Move over Macquarie Bank, NBN Co is the new Millionaires’ Factory

NBN Co’s average staff costs per employee of approximately $224,000 are more than double those of Telstra ($101,000) and of Westpac ($105,000).

In fact, to find staff costs comparable to NBN Co you have to go to Macquarie Bank – popularly known as the “Millionaires’ Factory” – where average staff costs are approximately $254,000.

‘When you compare NBN Co’s staff costs - revealed in its recently released annual report – with the staff costs of comparable Australian companies, the disparities are extraordinary,’ said Member for Bradfield and former telecommunications executive, Paul Fletcher.

‘How can NBN Co justify average pay levels so much higher than companies like Telstra and Westpac? 

‘One thing is clear – it cannot be justified based on performance. NBN finished the 2010-11 financial year with less than 2,000 active services and reported a loss for the year of $323 million. By contrast, Telstra delivered over eight million fixed and twelve million mobile services and its annual profit exceeded three billion dollars.

‘If a private sector investment bank like Macquarie can operate a successful business and offer very high pay levels, good luck to it. Like Telstra and Westpac, Macquarie has a proven track record of generating financial returns for its shareholders.

‘There is no such justification for NBN Co.  Its lavish pay levels are being funded with taxpayers’ money,’ Mr Fletcher concluded.

 

Note - further details in table below

Total Staff Expenses $ m

Staff    (average headcount)

Staff Expenses per Employee

Annual Report reference

Macquarie Bank FY 2011

$3,890

      15,325

$253,833.61

Page 87, "Total employment expenses" and "Average staff headcount"

NBN Co FY 2011

$119

          531

$223,885.12

Page 16; page 59, "Employment costs"

Westpac FY 2010

$3,990

      37,997

$105,008.29

Page 87, "Salaries and other staff expenses"; page 120, "Total employees"

Telstra FY 2011

$3,924

      38,740

$101,290.66

Page  23, "Labor" and "Full time employees and employed equivalents"

Note: headcount numbers are average for the year, either as reported or as calculated from

end of year and end of previous year headcount

Source: Annual reports