How much is Ahmed Fahour getting?

This afternoon I received an email from an anonymous loyal reader setting out the following comparison:

La Poste, France, 100% government owned, 2013 revenue €22 billion, 268,000 employees. Remuneration of CEO: €736,490.

US Postal Service, 100% government owned, 2013 revenue US $ 66 billion, 626,764 employees. Remuneration of CEO: US $550,000.

Australia Post, 100% government owned, 2013 revenue $5.8 billion, 32,732 employees. Remuneration of CEO: $4.8 million.

Then this evening I got sent Australia Post’s annual report:

Ahfour 1

Ahfour 2

Now I’m happy to believe that Fahour used to be a banker and got a huge salary and all. But the government doesn’t need to have former bankers running risk-free utilities and shouldn’t have to pay the going rate for bankers.

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57 Responses to How much is Ahmed Fahour getting?

  1. kae

    He’s not a stupid banker with a w. He’s on a bloody good wicket there.

    Who appointed him?

    Oh, nevermind.

  2. H B Bear

    Nice work if you can get it. No doubt there are a couple of (expensive) remuneration consultant reports around that can justify excuse it.

  3. Elizabeth (Lizzie) B.

    It’s all in the fine print. Superannuation. Can’t have them starving in their old age now, can we?
    Must alert Da Hairy Irish Ape to this little lost opportunity.
    He could do well at bossing around a few postmen, strictly nine-to-five, natch.

  4. Token

    Why is this organisation allowed to compete with private enterprise across so many parts of the transport industry?

    How is it possible a government enterprise is allowed to crowd out so many private businesses?

  5. Bruce of Newcastle

    Ah that ole technological change eh? Turns wagon companies into dust and railways into moneyspinners. The sailing ships of Australia Post are feeling challenged, and look to sail only 3 days a week. Yet their Admiral is still on a thousand guineas a year.

    He looks like a dinosaur just after Chicxulub.

  6. egg_

    the government doesn’t need to have former bankers running risk-free utilities and shouldn’t have to pay the going rate for bankers.

    There’s been similar snouts in troughs in both private and public enterprise for some time, awarding themselves dubious pay rises.

  7. Andrew

    Has Fahour done anything to earn the $ such as advocate for CAGW or provide the ALPBC with a sight bite smearing Abbott666?

  8. Bert

    Banks, too, are risk free entities (by virtue of government guarantees and too big to fail) and we shouldn’t pay banker salaries to bankers either.

  9. Duncan

    This is not a risk free utility. The business model no longer fits the modern era and the survival of Australia Post in its current form is just not possible. If he can restructure it and restore profitability with an acceptable ROE/ROA he will have performed a minor miracle and earned his salary.

  10. Bruce of Newcastle

    we shouldn’t pay banker salaries to bankers either.

    Except to lucky ones. Unfortunately Farhour isn’t, and at NAB, wasn’t, lucky.

    Sixth sense saves banker from another scrape

    ANZ chief executive Mike Smith’s sixth sense of imminent danger, which served him well in a previous tour of duty in strife-torn Argentina, has resulted in another lucky escape, this time from the Taj Mahal hotel in Mumbai.

    Three minutes before the luxury hotel was taken over by terrorists armed with assault rifles and grenades, Mr Smith is believed to have checked out and declined an offer from the head of the bank’s Indian operations to stay for a drink.

    ANZ’s Mike Smith is Australia’s most outspoken bank chief

    Along the way he picked up the scar tissue during a six-year stint as head of HSBC in Argentina in the late 1990s.

    It was there he was the target of a gunman after making some unpopular personnel changes.

    Shot in the leg, Mr Smith managed to escape in his then Jaguar – another reason for his love affair with British cars.

    “In a South American way, they thought if they removed me, they removed the problem, and they’d all go back to the way it was,” he told delegates at a business conference last year.

    “They had a good attempt, shot up my car, and I got a bullet though the leg. But I got away from them.”

    Yes, that Mumbai attack, which he escaped in a way 007 would’ve been happy with.

    Sorry, OT, but Smith is actually worth his stratospheric pay, at least if you believe in luck.

  11. and the survival of Australia Post in its current form is just not possible

    Their parcel delivery service makes money and, to a degree (very minor), so does front of house. The general mail section just bleeds money. I do know of one management company just itching to get a hold of AustPost.

  12. Elizabeth (Lizzie) B.

    I’d be quite interested in examining Australia Post’s hiring policies. Not many Anglo types on view over the counters. My unemployed disabled bro would love a sit-down job running mail sorters etc. Centrelink have never suggested Australia Post to him as far as I know.

  13. Rabz

    Remuneration of CEO: $4.8 million.

    WTF?? :x

  14. Grigory M

    I’d be quite interested in examining Australia Post’s hiring policies. Not many Anglo types on view over the counters.

    Might be a bit hard to discern the difference from the banks of the Liffy, Lizzie. I quite often see across the counters of various Australia Post Offices and Agencies – most of the ‘types’ I see are in fact Anlgos – not many seem to be non-Anglos.

  15. Grigory M

    Heh – Liffey. My Irish ancestors would not be pleased with my first spelling of it.

  16. .

    Privatise it and let the new owners do as they please with his salary.

  17. Grigory M

    Remuneration of CEO: $4.8 million.

    WTF?? :x

    Of course, no-one would imagine that downsizing the CEOs exorbitant remuneration is an excellent way to reduce Australia Post’s running costs. Must be using the Sue Morphet, Pacific Brands management model.

  18. jumpnmcar

    Deepak Chopra was appointed President and Chief Executive Officer of the Canada Post Corporation by Governor in Council Appointment until January 31, 2016. This full-time appointment bears a salary range of $440,900 to a maximum of $518,600.

    Apples with apples.

  19. Roger

    the government doesn’t need to have former bankers running risk-free utilities and shouldn’t have to pay the going rate for bankers.
    Amen to that. I think you’ll find he was appointed under the former Labor govt.

    I’d be quite interested in examining Australia Post’s hiring policies.
    Only Anglo types at my local, Lizzie. The big mail distribution centres may be different as I suspect Anglo Aussies tend not to apply for such “menial” jobs (a job is a job as far as I am concerned). But I think you’ll find AP’s policies are quite open to disabled people as far as possible. Your brother should apply and get on the waiting list; from what I understand the proposed job cuts are not presently targeted at mail centre workers, who they will always need to some extent. Good luck to him.

  20. Robert Blair

    I might be a bit behind the the times, but you guys are all thinking AusPost runs letter and parcel delivery.

    In my IT role, I know about two radically different business’es they are/have been involved in. Probably some smarter Cats will know of others.

    Some years ago I helped with tech transfer from Coles to AusPost of “Coles Online”.
    And I do business with AusPost every day with software my company develops that does online CC processing (and other online financial processing) via SecurePay (a wholly owned AusPost thing).

    So why is the government in these businesses? How can a startup fight the limitless pockets of the Government to get a foothold there?
    I know of at least one small independent online financial processor stiffed in favour of AusPost (sorry Harry) because Auspost can undercut them.

  21. Roger

    Of course, no-one would imagine that downsizing the CEOs exorbitant remuneration is an excellent way to reduce Australia Post’s running costs.

    Oh, I don’t know, Grigory – it would be a symbolic start!

  22. James B

    I don’t really care about this at all.

    I actually like Fahour. He’s anti-union and pro-efficiency, he even supports privatising the service. Well worth whatever he’s paid.

    Find something more important to complain about.

  23. Elizabeth (Lizzie) B.

    True Grigory, my sample is limited – mainly Potts Point branch and a few other inner urbs. Others I talk to though, with a wider sample, have noted to me the same. Perhaps it is area related. I still wonder at how certain ethnic groups manage to capture particular avenues of employment. Always been so, I guess. Irish Cops, in American cities, for a start.

    There was just some thunder here near Anna Liffey Plurabelle. She knows we’re talking about her mob now.

  24. .

    Correct Robert.

    They are basically moving to ID services and payments processing.

    The Digital Mailbox is good (rarely will I praise AP), but since they can’t convince any billers really to use it (I think the list of billers has about 20), it is near useless.

  25. Grigory M

    Anna Liffey? Plurabelle

    It’s good that Anna Livia has been relocated away from O’Connell Street, where the drunks and others too often contaminated her water. Don’t know that I really like the big steel spire though.

  26. Elizabeth (Lizzie) B.

    Joyce’s Anna was always really Anu, the ancient goddess of the Liffey, Grigory.

  27. Peter from SA

    people might be paid $4m a year in the corporate sector … if they are worth it.

    what ’00s of millions of efficiencies in a monopolist Aust Post has this guy proved himself with?

    My own business is significantly worse off due to the airmail parcel prices to the USA. For 1.5kg, costs more than what we are exporting.

  28. Grigory M

    Joyce’s Anna was always really Anu, the ancient goddess of the Liffey, Grigory.

    No way, Lizzie – really? I must get out my copy of Finnegan’s Wake again.

  29. Token

    I know of at least one small independent online financial processor stiffed in favour of AusPost (sorry Harry) because Auspost can undercut them.

    They are now selling into insurance. Not just selling through shopfronts, actually writing policies.

    They are a government entity using the power of government to ride the web buying boom and drive private operayors out of business.

  30. Gab

    How on earth did the AusPost CEO wrangle THAT HUUUUGE salary paid for by the wukkers of Australia? Oh, wait, he was appointed when Labor was in government. Negotiations must have been hilarious.

    They are a government entity using the power of government to ride the web buying boom and drive private operayors out of business.

    A government selling car insurance? Caveat emptor!

  31. None

    AusPost just spent mega bucks developing an email system they’re trying to flog to everyone for ‘free’. One stop shop for bills etc etc (in other words also a great place for government types to scan your email). Why the hell is a government org spending our money developing big brother email? Sack this idiot.

  32. Baldrick

    Fahour gets paid a weekly salary of $92,000, more than it takes the average Aussie to earn in one whole year and almost 10 times the weekly salary of the Prime Minister … and I thought Mark Scott was on a good wicket.

  33. 2dogs

    He’s anti-union and pro-efficiency, he even supports privatising the service.

    Doubtful. He was in with the ALP up to the hilt; he was at Rudd’s 20/20 forum.

    He’s a global warming believer, and proselyted it to NAB staff when he was CEO there.

  34. JohnA

    jumpnmcar #1342277, posted on June 10, 2014 at 9:25 pm

    US postal service Boss, guess how much in 2011

    http://www.washingtonpost.com/blogs/federal-eye/post/salaries-of-top-postal-service-executives-revealed/2011/05/10/AFGaBjgG_blog.html

    From the link:

    Donahoe, who took over as postmaster in December, is on course to earn $276,840 this year before deferred compensation, performance bonuses and pension payments

    which means we should compare dem apples with $1,927,754 and yes, we can see that dose apples are still pretty over-priced.

    Furthermore, only ONE AustPost senior executive earns less than this chap in straight (taxable) salary.

  35. nilk

    Ahmed has also been swanning around as the patron of the Islamic Museum of Australia over in Thornbury, a family project.

    Considering his pay packet, I see no reason why he couldn’t have financed the whole thing rather than letting the Fed and State gov’t pony up a good chunk of the $10m to build it.

  36. .

    FFS. …and people say that there isn’t any government waste?!

    Thanks Rudd & Swan.

  37. .

    It has private backers…let them back it 100%.

    The government should not spend one cent on religion.

  38. Combine_Dave

    I don’t care how much he gets paid.

    Australia Post should be privatized (or forbidden from trading in any industry bar letter delivery).

    At that point Ahmed’s (and any other employee’s) salary is of no concern to anyone but Ahmed and the tax man :)

  39. rickw

    Do Bankers actually know anything?

    Why do taxpayers still own Australia Post?

    Does Ahmed Fahour makes any donations, if so, to what organisations?

  40. egg_

    I actually like Fahour. He’s anti-union and pro-efficiency, he even supports privatising the service. Well worth whatever he’s paid.

    The Sue Morphet principle?
    Let’s move the decimal point, shall we: worth $48M p.a.?
    Move the decimal point for all CEO’s “cause they’re worth it”?
    Subjective, non?

  41. .

    rick

    Banking was one of the harder commerce disciplines until derivatives trading got taken over by quants. Now they’ve also pushed up some standards in grad bankers.

    The generalist course is still reasonably tough. Probably about has hard as straight economics or finance but more varied.

    If they don’t learn anything with a decent education and then making a lot of money interacting with other commerce disciplines and most sectors of the economy plus doing a heap of PR and face to face management under high stress – then we’re all fucked, I’d say.

    You are utterly correct – Aus. Post has no justification in being publicly owned. It goes against the principles of NCP for example. It is competing under the shield of the crown. It has to be privatised before it destroys more competitors.

  42. egg_

    Aus. Post has no justification in being publicly owned. It goes against the principles of NCP for example. It is competing under the shield of the crown. It has to be privatised before it destroys more competitors.

    The same argument that should be more forcefully put re the ABC.

  43. .

    egg

    Truth be told the more odious, anti competitive measures are the refusal to sell more broadcast rights or the Australian Postal Corporation Act which sets out that any letter which has a fee for delivery which competes with Aus Post must be priced at least four times the Aus Post standard rate.

    These two functions may be obsolete in just a few years, but they’re egregious examples of the shield of the state.

  44. egg_

    These two functions may be obsolete in just a few years

    Agreed.
    I was thinking more of the ABC’s online practices re Fairfax, etc. who rely upon advertising to meet costs.
    This is also another reason for the Govt broadcaster to be more balanced, so that it doesn’t eat into the editorial style of private media.

  45. Bill

    US Postal paid Lance Armstrong at least ten times their CEO’s salary. But probably not as much as Fahour.

  46. Des Deskperson

    ‘I’d be quite interested in examining Australia Post’s hiring policies.’

    Lizzie. according to its 2013 annual report, 7.1% of its employees identify as disabled. That’s pretty good compared to, say, the Australian Public Service with 2.9%. Of course, these figures aren’t broken down into types and levels of disability. In the APS, ‘employees with disabilities’ tends to mean people with sight or hearing impairments rather than with serious mobility problems.

    The percentage of employees in AP from ‘culturally and linguistically diverse backgrounds’ is 23.1%, compared with around 16 % in the APS. Not a great deal of difference, and I suspect that Anglos are less interested in AP shift work (c/f Richard Wright’s novel ‘Lawd Today’).

  47. MT Isa Miner

    Grigory M

    #1342253, posted on June 10, 2014 at 9:10 pm

    I’d be quite interested in examining Australia Post’s hiring policies. Not many Anglo types on view over the counters.

    Might be a bit hard to discern the difference from the banks of the Liffy, Lizzie. I quite often see across the counters of various Australia Post Offices and Agencies – most of the ‘types’ I see are in fact Anlgos – not many seem to be non-Anglos.

    Might be different in regional places- one of Newcastle inner suburbs has 2 Indian recent migrant families running 2 sub branches out of 4 or 5 branches. Small business where you can split the work between husband and wife and the little kids can be in a corner until school.

    Does anyone beat City Rail in Sydney for migrant employment? I wonder if Des has any numbers?

  48. mundi

    I don’t understand why people above are saying Post operates under the shield of the crown, crowds out the market and destroys competitors?

    Post operate the parcels and retail in the free market, and use those profits to subsidise letters monopoly. They are not using government dollars to under-cut competition. If they were privatised, they would surely have more money to capture the parcels market and beat even more competitors?

  49. .

    They are protected on letters.

    They otherwise operate under the shield of the crown in everything else they do.

    They are not using government dollars to under-cut competition.

    Yes they do. The UPU operate in a cartel like manner. They do so in ID processing, payments processing and freight, on top of having special protection under legislation on letters.

  50. Elizabeth (Lizzie) B.

    Thanks Des Deskie. Lazy me, I should have done a check myself. I think the very high incidence of certain ethnic groups in some AP set-ups is probably as Mt. Isa Miner suggests: a franchised small business, family and friend hired and run. Guess they are not included in the general figures.

  51. Des Deskperson

    Mt Isa Miner, Railcorp – as that what Cityrail is now called?? – reports that at 30 June 3013, 28.8% of its employees were ‘People whose first language spoken as a child was
    not English’.

    Our local post office – in outer west Canberra – is all Anglo-Celt except for a little Thai lady. The whole staff, BTW, is highly professional; client focussed, flexible and efficient.

    city

  52. Notafan

    Around our way the PO franchise generally turns over to Chinese families, current ones have one speaking English and the other, not really. The Aussie part-timer had lasted three owners.
    I assume they come in on business migrant visas.

  53. sabrina

    I posted a parcel by EMS Express International courier on 30th May to Germany through the Australia Post. It still has not reached the recipient.

    What a level of service!

  54. Rabz

    Sabrina,

    I get my tax free goodies from the Bayern Munich shop in around five working days. Thankfully, AP is not involved at any point.

  55. watching it unfold

    Another one ! Similar to what the AFL has – same animal most likely, needs to be studied and habits documented.

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