Macquarie chief executive Nicholas Moore has been rewarded for another record profit with a near-$20 million pay packet.
Mr Moore’s total remuneration rose five per cent to $19.65 million after the financial services giant lifted full-year profit 15 per cent to $2.56 billion for the year to March 31.
And the chief executive’s net worth got another boost as Macquarie’s shares rose – hitting an intra-day record high above $110 before closing at $108.01 and increasing the value of his stake in the company to almost $250 million.
Mr Moore is Macquarie’s eighth-largest shareholder and, even before Friday’s result, was one of Australia’s best-paid bosses.
Macquarie chairman Peter Warne defended the mammoth pay packet, stressing that the vast majority of shareholders voted in favour of the remuneration report.
“It is based on the fundamental principle of a long-term partnership between the staff and shareholders,” Mr Warne told reporters on Friday.
“We certainly firmly believe that it is to the benefit of the company and I think that is recognised by the shareholders.”
An Australian Council of Superannuation Investors report – based on his 2017 wage – had named Mr Moore the highest paid stand-alone CEO among ASX100 companies, second only to the sum Westfield gave co-CEOs Steven and Peter Lowy.
Mr Moore on Friday said he hadn’t detected any concern among overseas investors about potential changes or reputational damage as a result of the ongoing banking royal commission.
“The regulation of banks and the financial sector is something that has been very high of mind for investors for some time now,” he said.
Macquarie’s record profit – up from $2.22 billion a year ago – is expected to be broadly similar in FY19, the group said.
Profit from capital markets businesses rose 11 per cent in FY18, while profit from annuity-style businesses – banking, asset management and corporate finance – rose six per cent.
Banking and financial services profit rose nine per cent to $560 million, with the group’s Australian mortgage portfolio rising 14 per cent to $32.7 billion – or about two per cent of the local market.
It lifted its final dividend 40 cents to $3.20, fully franked.
MACQUARIE’S FY RESULTS
* Net profit up 15.34pct to $2.557b
* Income up 5.36pct to $10.92b
* Final dividend up 40 cents to $3.20, fully franked.