BlueScope boss gets paid millions, steelmaker pays no corporate tax

An analysis of Tax Office transparency records and annual reports  showed BlueScope was one of a number of top Australian companies where executives got big bonuses while skimping on corporate tax payments.

In 2016-17 steel maker BlueScope paid Mr O'Malley almost $4 million on top of his base salary of $1.86 million in 2017.

According to a Sydney Morning Herald investigation the steelmaker paid no tax since 2013-14 as it carries forward Australian tax losses of approximately $2.7 billion, including research and development tax offsets.

The figures come amid community disquiet fuelled by the growing gap between executive pay and workers’ wages, which have been stuck at historic lows.

Don Meij, the chief executive of Domino’s, had a realised pay of up to $36.8 million after selling some of his shares in the pizza giant.

The CEO earned three times what the company paid in tax – $14.1 million – or 19 per cent of the full 30 per cent tax rate in 2016-17.

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Average chief executive remuneration for the largest 100 Australian companies declined from $5.5 million in 2007, to $4.7 million in 2011 but has since increased steadily back to $5.2 million in 2017.

The Australian Shareholders Association (ASA), which represents retail shareholders, has warned business must win back the trust of the community amid signs that both sides of politics will take a tough line on big business ahead of the federal election.

ASA chief executive Judith Fox said there had been a shift among shareholders as to what is appropriate in the past year.

"There is a significant lack of trust in business, not just in banking, but in business, and certainly the community struggles to see why people are being paid bonuses on top of very high fixed remunerations," she said.

Ms Fox said bonuses should never be seen as an entitlement and should only awarded for performance that went above and beyond expectations.