NBN Co’s senior executives shared $1.96 million in bonuses in the last financial year, despite a $2 billion cost blowout on the project and rollout delays.
The company’s annual report [pdf] reveals bonuses across NBN Co’s total employee base of 4254 staff amounted to $42.78 million for FY18, plunging from $60.04 million in FY17.
Bonuses given to “key management personnel” totalled $1.96 million, again down from $2.88 million the year before.
Executive bonuses depended on five “corporate measures” including ready to connect, premises active, total revenue, the “NBN Co controlled end-user customer experience” and reputation.
Three-quarters of each executive’s bonus was paid in cash with the remainder deferred for two years.
However, the annual report noted that former CEO Bill Morrow’s bonuses were not subject to deferral.
Morrow’s total remuneration in FY18 came to $3,138,582, which was $424,227 less than the previous year. His total bonus for FY18 was $765,080.
Across the board, bonuses were down on last year.
They were paid out in a year when NBN Co’s build costs rose by $2 billion, earnings were delayed through FY19 and dates for 1.2 million premises were pushed back.