Diligent report finds Australian CEO pay rising as boards increase focus on long-term incentives

Median granted CEO pay across the ASX 200 rose 9.8% to A$5.2 million in 2025, according to new research from Diligent Market Intelligence, as Australian boards continue to navigate competition for senior leadership talent alongside investor and governance scrutiny.

The Executive Compensation in 2026 report also found median realised CEO pay increased 10.6% across the ASX 200. Across the broader ASX 300, median granted CEO pay increased 4.8% to A$4.2 million, while realised pay rose 23%.

The findings highlight a broader shift in how Australian companies structure executive compensation, with long-term incentives accounting for an increasing share of CEO remuneration.

Long-term incentives take a larger share

Long-term incentives accounted for 45% of median granted CEO pay at ASX 200 companies in 2025, up from 42% in 2024 and 39% in 2023.

Median granted long-term incentive pay reached A$2.1 million, compared with A$1.8 million in 2024 and A$1.4 million in 2023.

At the same time, base pay represented 33% of median granted CEO compensation in 2025.

The shift suggests boards are placing a greater proportion of executive rewards around longer-term performance and retention rather than fixed compensation alone.

Boards balance talent competition and investor scrutiny

Diligent's findings come as Australian companies compete for senior executives in an increasingly global leadership market.

Andrew Amos, Vice President, APAC at Diligent, said executive remuneration is becoming an increasingly important governance issue as boards balance competition for leadership talent with shareholder expectations.

The report examines compensation trends alongside pay-for-performance alignment, CEO succession, governance and disclosure, providing context for how boards are structuring executive packages across major markets.

Australia's remuneration framework adds another layer

Australian listed companies operate within a remuneration framework that gives shareholders a formal role in scrutinising executive pay.

Under the country's "two strikes" provisions, if more than 25% of votes are cast against a company's remuneration report at two consecutive annual general meetings, shareholders can be asked to vote on a resolution to spill the board.

The framework means remuneration decisions are considered not only through the lens of attracting and retaining executives, but also through disclosure, shareholder response and board accountability.

For financial services companies, additional requirements can apply to the deferral and structure of variable remuneration for certain senior executives.

Investor support remains broadly stable

Despite the increase in executive pay, Diligent's research found that average investor support for advisory remuneration reports among ASX 200 companies remained at 90.6% in 2025.

The figure indicates that rising compensation levels have not translated into a corresponding decline in overall shareholder support for remuneration reports.

However, the combination of rising pay, greater use of long-term incentives and continued investor scrutiny places greater importance on how boards explain the relationship between executive rewards and company performance.

The role of long-term performance

The increasing proportion of long-term incentives reflects a broader focus on linking executive compensation with longer-term business outcomes.

For boards, this involves decisions around performance conditions, equity awards, retention and the time horizon over which executive performance is assessed.

Diligent's research positions these considerations within a wider global compensation environment, where companies are competing for leadership talent while investors continue to examine whether remuneration structures are aligned with sustainable value creation.

Executive compensation remains a governance issue

The latest data puts Australian CEO compensation firmly within the wider conversation around corporate governance and leadership strategy.

With median granted ASX 200 CEO pay reaching A$5.2 million and long-term incentives accounting for nearly half of the package, the structure of executive remuneration is becoming as important as the headline figure.

For Australian boards, the challenge is balancing competitive compensation with clear performance alignment, transparency and shareholder expectations as the executive talent market continues to evolve.

About Diligent

Diligent is a governance, risk and compliance software company providing solutions for boards, executives and practitioners. Its Diligent One Platform brings together governance, risk, compliance and related workflows, while Diligent Market Intelligence provides data and analysis covering areas including executive compensation, corporate governance, shareholder activism and investor voting.

Source and Credits

Source: Diligent Market Intelligence, Executive Compensation in 2026

Additional source: Diligent official press release, September 30, 2026

Credits: Diligent