Business, consumer lull; biggest is not best in CEO pay; SpaceX shares tumble

Business, consumer lull; biggest is not best in CEO pay; SpaceX shares tumble

News in brief

US Central Command continues to strike against Iran, as US President Donald Trump’s imposition of a 20 per cent toll on cargo shipped through the Strait of Hormuz drew ridicule from friends and foes alike.

 

The Australian Signals Directorate has joined with 12 international intelligence partners to issue a warning over a rise in attempts by criminals linked to Russia’s spy agency to hack key industries including financial services, energy, healthcare and government facilities.

 

Britain’s next Prime Minister will be Andy Burnham, after he received more than 300 nominations to lead the Labour Party, allowing him to run uncontested.

 

The share price of SpaceX, the one-time hottest IPO of the year, has fallen back to its initial issue price, having surged by nearly 50 per cent in the first few days of trading.

Fear-o-meter

Louise Davidson, Chief Executive of the Australian Council of Superannuation Investors, on ASX-listed CEO pay:

 

"The challenge for Australian investors is that CEO pay in the US is often not aligned to performance hurdles or shareholder outcomes over the long-term.

 

Our long-running research shows that Australian investors and boards have had more success keeping domestic remuneration to a more reasonable level, with ASX100 CEO fixed and cash pay levels continuing to plateau. Despite a 4% rise this year to a median $1.83m, CEOs are still receiving less than their colleagues in the record year of 2012, who took home a median of $1.95m.

 

The focus of Australian investors and boards has meant that ASX CEO pay levels have generally avoided the runaway increases we’ve seen elsewhere. It also means that where CEOs do appear in the highest paid list, their companies will generally have delivered strong performance over the long-term, although there can be notable exceptions."

Fear & Greed Q+A today

On the NAB Business Survey for June, including confidence, conditions, and what it all means for the broader economy:

 

“The cost measures have told a pretty interesting story. We saw input costs for businesses and the prices they charge customers all jump initially as that Middle East shock echoed through the economy.

 

But because the economy has been slowing, output prices now seem to have fallen back a bit more quickly than those input cost pressures. That tells us it's a challenging environment for profitability because margins are under pressure.

 

Overall though, the magnitude of the shock and those initial cost pressures we've been seeing since March have continued to fade.”

Business confidence has improved for the third consecutive month but remains below long-term averages as trading conditions show little change. National Australia Bank’s monthly survey showed confidence rose 9 points during June and is now almost back to pre-war levels. However, it is still below the long run average.

 

Business conditions were unchanged at 3 index points, with gains in profitability offset by a decline in employment and broadly flat trading conditions. Confidence improved across most industries, led by retail and manufacturing although sentiment remained negative across all sectors on a trend basis.

 

NAB said the easing in business conditions over recent months pointed to a slowdown in economic activity through the first half of 2026, and an easing, somewhat, of inflationary pressures.

 

The Westpac-Melbourne Institute Consumer Sentiment Index rose 4 per cent to 84 points over the past month, although remains in the bottom 10 per cent of results in the survey’s 50-year history.

 

The rise reflected easing concerns over fuel prices, interest rates and jobs, but households remain deeply pessimistic about the economy and spending outlook.

Greed-o-meter

Rank	CEO	Company	Realised pay
1	Chris Hulls	Life360	47,701,751
2	Mick Farrell	ResMed	35,185,596
3	Robert Thomson	News Corporation	33,585,058
4	Vikesh Ramsunder	Sigma Healthcare	32,622,837
5	Shemara Wikramanayake	Macquarie Group	30,394,495
6	Jon Pilcher	Neuren Pharmaceuticals	21,702,500
7	Greg Goodman	Goodman Group	20,394,677
8	Raleigh Finlayson	Genesis Minerals	15,078,066
9	Tom Palmer	Newmont	13,729,622
10	Mike Henry	BHP	13,211,709

Forwarded from a friend? Sign up to our daily newsletter

US-based companies have staked their claim to the biggest salaries in the ASX, with five out of the top 10 highest earners this year CEOs of US-domiciled companies. While US-based CEOs have always appeared in the list compiled by the Australian Council of Superannuation Investors, it's the first time ‘outsiders’ have taken half of the top ten spots.

Listen to today's episode 🎧 

* Grey shade = US-based CEO

Source: ACSI