NATIONAL: Wholesale group Pacific Brands has broken its silence over damning reports executives were given a 170 per cent pay rise in the lead up to sacking 1850 workers.
Newspaper reports today revealed executive pay packets had doubled from $7 million to $15.5 million over 2008, despite sharp declines in the group's share price and a planned cull of its local workforce.
Chief executive Sue Morphet was granted a salary of $1.86 million and a "seven-fold" increase in incentive payments, up from a flat $685,775 in the previous year.
Pacific Brands issued a statement
this afternoon defending its decision. The company said the increase resulted
from Morphet's promotion from general manager of underwear and hosiery to chief
executive.
"Her remuneration
is approximately half that of the previous chief executive officer, a decision
taken by the board and incoming chief executive officer," the statement
read.
Previous chief executive Paul Moore, who resigned in December, also came under fire late last year for his pay package. Independent news firm crikey.com.au revealed that despite working for only six months of the financial year, Moore was paid a fixed salary of $1.56 million - up from $1.19 million for the "full" twelve months worked in the previous year.
Moore was also granted over $3 million in retirement benefits from Pacific Brands, despite the company's groaning debt load of $740 million and no obligation to issue a "golden handshake".
Pacific Brands posted loss of $150 million for the first half of this financial year.