Seven Group Holdings executive chairman Kerry Stokes has defended the salary package of group managing director Don Voelte by arguing that Australia is a "small fish tank" for top talent that could earn far more in Hollywood.
Voelte, the former Seven West Media CEO since appointed to the combined CEO and managing director's role across the group, stands to earn $5.6m per annum if all targets are hit. He has a base salary of $3.6m. Shareholders at today's AGM argued that might be "excessive" remuneration and argued for a lower base salary with more performance risk.
Stokes though backed his man and the money and controls 67% of the vote.
"The issue regarding media companies in Australia and remuneration is that Australia is a very small fish tank."
Noting Australia's reputation for "producing great people in the entertainment industry" and the wages on offer in Hollywood, Stokes said the challenge for Australia is to keep talent. "Retaining them is only possible by paying them high."
Voelte, he said, was "one of the few people in the country fully qualified across all of our endeavours" and despite a six month notice period, had offered the board a one month notice clause, demonstrating his commitment.
Stoke said he "fully hoped" as a shareholder, "that we pay him the full amount of bonus because he will have laid the foundations for the current difficult period and the 10 years to come".
Pressed on a lower base salary for Voelte, Stokes said "when there is an equal opportunity on both sides, you pay what the market demands. Obviously we'd like to pay him half, but that opportunity was not available".
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