Xero Chief Executive Sukhinder Singh Cassidy’s proposed new pay deal is set to face intense scrutiny from shareholders, particularly after her recent divestment of all company shares. The situation coincides with the release of the latest data on chief executive pay across the ASX 200, which underscores a prevailing focus on linking remuneration to performance. Xero is a global cloud-based accounting software provider, offering solutions for small businesses to manage their finances and operations. The company’s share price has seen a significant decline from a record high of $194 in June 2025 to approximately $71 on Tuesday, adding complexity to any further pay considerations.
The annual review by the Australian Council of Superannuation Investors (ACSI) and proxy advice firm Ownership Matters reveals how Australia’s remuneration system, built on active scrutiny by superannuation funds and non-binding annual votes, effectively aligns pay with company outcomes. Over the past decade, the median cash amount paid to ASX 100 CEOs, encompassing fixed pay and actual cash bonuses, has actually fallen by 1 per cent per annum. In the 2025 period studied, this figure decreased by 1.6 per cent to $2.6 million. Meanwhile, bonuses, which often include short- and long-term equity grants, saw a modest increase of 1.1 per cent per annum over the decade, rising 5.3 per cent to $1.7 million for ASX 100 CEOs in 2025.
While the median realised pay for an ASX 100 CEO in 2025 stood at $4.8 million, or 42 times the median Australian wage, this remuneration restraint is considered broadly appropriate given Australia’s average economic growth and the share market’s performance relative to international benchmarks. Australian boards and investors are prepared to reward strong value creation, with significant realised pay packages for executives like Vikesh Ramsunder of Sigma Healthcare ($32.6 million) and Raleigh Finlayson of Genesis Minerals ($15.1 million) demonstrating this. However, investor sentiment suggests a strong inclination to push back against any perceived “second bite of the cherry” on remuneration, reinforcing the principle that pay should be firmly tied to performance, despite higher pay observed for some US-based CEOs who are often seen as outliers in the local market.
