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Issue No. 135 | 10 May 2002 |
The Costs of War
Interview: Squaring Off Industrial: Heroes Betrayed History: At The Coalface International: Wobblies With Chinese Characters? Politics: Dancing with Trotsky Economics: You Are What You Eat Poetry: Alexander's Bragtime Band Satire: Stott Despoja Celebrates Engagement With Minor Party Review: Painting Paradise
Gun-Runners Threaten Aussie Coast Kings Cross Date For Commissioner Cole Sunbeam Irons Out Sydney Grand Mother NSW Libs Open to Abbott Takeover Terror Bill Needs More Work, ACTU Burma Release Fails to Blunt Campaign East Timorese MPs oppose Timor Sea Arrangement Airport Screeners Face Men in Jocks Unions Push into Regional Queensland
The Soapbox The Locker Room Postcard Bosswatch Week in Review Tool Shed
No Choice Who Rules Australia? No Wrap for Song Comp Abbott's Contempt
Labor Council of NSW |
Bosswatch A Share of the Action
Westpac Profit Hits Nine Figures Westpac has denied its half-yearly profit of more than $1 billion has come about through the neglect of its customers and staff. has expressed his delight at the profit result. Westpac has posted a $1.02 billion half-year profit to March, a 10 per cent improvement on last year's half-year of $924 million - delivering an interim dividend of 34 cents to shareholders. Westpac chief executive David Morgan it is a clean solid result and he denies it has come at the expense of customer service. "Our customers are doing more business with us than ever before. Their satisfaction ratings are up," he says. ANZ Promises Shorter Queues Elsewhere in the banking sector, ANZ Banking Group Ltd has expanded its customer charter, making ten promises to customers as part of what it says is a further effort to restore customer faith in banking services. The customer charter, effective immediately, establishes benchmarks for the provision of service to personal and small business customers. This includes new promises on simple accounts, fees and charges, quick, convenient branch banking including a target to serve customers within five minutes of arrival and a national review of branch opening hours. As well, it includes promises on fast, efficient phone service including standards for maximum waiting times when calling to speak to a customer service representative. The Finance Sector Union is interested in learning how the new policy sits with recent cuts to staffing numbers. Explosive result Driven By Staff Cuts Explosives manufacturer Oric ahas posted an $80.4 million profit for the six months to the end of March, a result which beyond market expectations. CEO Malcolm Broomhead is enjoying the boucquets after sacking 10 per cent of the company's workforce. Broomhead claims the cost-cutting program produced savings of $25 million. Orica is the world's largest manufacturer of explosives for the mining industry, and there is strong demand in Australia for its products, mainly from coal-mining companies. The company's other main market is the United States, which has returned to profitability in the six months to March. Austar Vaule Drops as CEO Pay Rises As regional teleco Austar's value plummets, the personal value of its CEO John Porter is heading in the opposite direction. Porter was paid a tidy $1.16 million for running the bush pay TV outfit in 2001, a handsome 35 per cent increase on the $856,000 he received for his services in 2000. Not a bad reward for the year that Austar lost $682 million, sacked a third of its staff, failed to sign up more pay TV customers and defaulted on its loan repayments (although it has since sorted its funding out). Porter's base salary only increased by a paltry $80,000 to $540,000. The real windfall came in the form of tax equalisation payments, which went from $67,000 in 2000 to a whopping $452,000 in 2001. A company spokesman defended the $270,000 in bonuses, which were paid last April, claiming they related to the 2000 calendar year. Bosses Thrive With Non-Cash Bonuses Perks for corporate bosses go beyond pay to cars, entertainment expenses, airline clubs, golf club and gym memberships, private travel and mobile phones, to name just a few. The most used perk available to employees were discounts off company goods and services. In some cases, the company paid for their education. The Australian Institute of Management's latest national salary survey found that executives and managers did not get that much more lucre last year. But the non-wage bonuses still ensured few were crying poor. the perks. The survey found that 55.3 per cent of senior executives were offered cars, 10.7 per cent a second one, 43.6 per cent airline club memberships, 7.9 per cent memberships at the gym, social club or golf club, and 4.8 per cent private travel. And the Winner Is ..... US company E*Trade Group Inc paid chief executive Christos Cotsakos $US77 million ($A143 million) in 2001, more than four times what any Wall Street CEO earned. Mr Cotsakos' compensation included $US29 million in restricted stock, forgiveness of a $US15 million loan, and another $US15 million for taxes after the loan was reclassified as compensation, according to a filing to the Securities and Exchange Commission. This is despite E*Trade losing $US253 million since 1997, including a $US241 million loss in 2001 as online trading slumped in the wake of stockmarket declines. Mr Cotsakos' pay - about 35 times what he earned in 2000 - comes as the company's board negotiates his new contract, to replace one expiring in May. The company, which is facing declining business and consolidation in the online brokerage industry, said it gave him part of the raise to help retain him. Buffet Slams Option Excesses Also in the US, Berkshire Hathaway chairman Warren Buffett has argued executive compensation through options is both "shameful" and "immoral" The annual Berkshire Hathaway meeting - dubbed the "Woodstock for capitalists." - was told that attempts to hide the use of options as compensation should be opposed by shareholders. Buffett who receives receive annual compensation of $US100,000 ($185,000) from Berkshire, chastised fellow leaders of US companies for greed and compensation that puts executives' interests ahead of shareholders'. Buffett said chief executives were trying to convince lawmakers to change the way options from compensation were expensed on balance sheets. "It's shameful that this group that is getting well fed under the system wants more," he said.
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