Opposition questions the Premier about Western Power executive bonuses, claiming the government broke promises by embedding bonuses into base salaries, benefiting executives while families face rising electricity prices. Premier deflects, blaming the previous Labor government for the bonus structures.

AnsweredQoN 460Legislative Assembly
Asked
16 August 2011
Portfolio
Premier

QuestionView source ↗

WESTERN POWER — PERFORMANCE BONUSES
I refer to the government’s repeated promises to remove performance bonuses of 25 per cent for senior executives and 11 per cent for branch managers from Western Power’s employment contracts. (1) Why has the government simply added the maximum bonus to each executive’s base salary? (2) Does that not just deliver windfall benefits to highly paid executives by — (a) giving them the maximum bonus every year regardless of performance; (b) increasing the dollar value of their future annual wage increases; and (c) massively increasing future superannuation payouts for many of these executives? (3) How can the Premier justify this sort of government action when Western Australian families are doing it tough facing his government’s savage increases in their electricity prices? Mr C.J. BARNETT

AnswerView source ↗

I thank the Leader of the Opposition for the question. (1)–(3) Of course it was the Labor government that built in bonus structures to the salaries of CEOs — Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
(1) Why has the government simply added the maximum bonus to each executive’s base salary? (2) Does that not just deliver windfall benefits to highly paid executives by — (a) giving them the maximum bonus every year regardless of performance; (b) increasing the dollar value of their future annual wage increases; and (c) massively increasing future superannuation payouts for many of these executives? (3) How can the Premier justify this sort of government action when Western Australian families are doing it tough facing his government’s savage increases in their electricity prices? Mr C.J. BARNETT replied: I thank the Leader of the Opposition for the question. (1)–(3) Of course it was the Labor government that built in bonus structures to the salaries of CEOs — Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
(2) Does that not just deliver windfall benefits to highly paid executives by — (a) giving them the maximum bonus every year regardless of performance; (b) increasing the dollar value of their future annual wage increases; and (c) massively increasing future superannuation payouts for many of these executives? (3) How can the Premier justify this sort of government action when Western Australian families are doing it tough facing his government’s savage increases in their electricity prices? Mr C.J. BARNETT replied: I thank the Leader of the Opposition for the question. (1)–(3) Of course it was the Labor government that built in bonus structures to the salaries of CEOs — Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
(b) increasing the dollar value of their future annual wage increases; and (c) massively increasing future superannuation payouts for many of these executives?
(c) massively increasing future superannuation payouts for many of these executives?
Mr C.J. BARNETT replied: I thank the Leader of the Opposition for the question. (1)–(3) Of course it was the Labor government that built in bonus structures to the salaries of CEOs — Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
I thank the Leader of the Opposition for the question. (1)–(3) Of course it was the Labor government that built in bonus structures to the salaries of CEOs — Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
(1)–(3) Of course it was the Labor government that built in bonus structures to the salaries of CEOs — Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
Ms M.M. Quirk interjected. Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
Mr C.J. BARNETT : That is what the Labor government did—it built in bonus structures. Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
Mr E.S. Ripper : You said you’d get rid of them, and this is what you’ve done. Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
Mr C.J. BARNETT : Mr Speaker, I am very happy to answer questions—as many of them as the opposition wants to ask me. Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.
Those bonus structures were built in under contracts signed by the previous government. This government got rid of the bonus structure and, yes, they are in most cases built into the salaries. We did not talk about reneging or trying to undo people’s contracts that they had legally entered into with the Labor government, but we did remove the bonus structure and we will not see bonus and incentive structures built into public sector employment under this government.

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