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"The modern conservative is engaged in one of man's oldest exercises in moral philosophy: that is the search for a superior moral justification for selfishness." : John Kenneth Galbraith

And the rich get rich.....

Posted at 8:09 PM, 15/5/2007

http://www.abc.net.au/news/newsitems/200705/s1923580.htm

Macquarie stands by $33.5m pay packet

Macquarie Bank has defended the multi-million-dollar salaries paid to its top executives, after it announced its chief executive, Allan Moss, would get $33.5 million this year, including bonuses.

Mr Moss was already Australia's highest-paid chief executive but his pay packet has risen by $12.3 million this financial year.

The announcement came as Macquarie posted a record annual profit of $1.46 billion, up 60 per cent from the previous year.

Shareholders will be rewarded with a final dividend of $1.90 per share.

In response to the announcement, Prime Minister John Howard has said some executive salaries are over the top.

"Thirty-three million dollars is a lot of money, isn't it? It's a lot more than most people... make," he said.

"I am in favour of the capitalist system, I really am, and I don't think it's the business of Government to put caps on peoples' salaries but if you ask me as a citizen, do I think that's a lot of money? You bet I do."

But Macquarie chairman David Clarke says the company's level of remuneration is in line with its competitors.

"People only get bonuses if they perform and they know that when they join us, that if they perform, they will be rewarded appropriately," he said.

"We don't believe in caps, we don't believe in floors.

"We have a system that produces good results if we deliver to the shareholders and that's what happened this year."

Macquarie Bank has recently been involved in two failed takeover bids.

It was part of the consortium that made an $11 billion bid for Qantas but the deal fell through because it did not get enough shareholder support.

The investment group's recent takeover offer for the utility Alinta was also rejected in favour of a rival bid by Babcock and Brown.

Mr Moss says he will examine the failed bids but not focus on them.

"These are two transactions which had the potential to be important transactions but nevertheless, our business is way bigger than two transactions in one country," he said.

Macquarie's income from international operations has meanwhile surged 70 per cent and now accounts for 55 per cent of total operating income. The bank maintains 50 offices in 23 countries.

Despite the proportion of international earnings, the group's board has resolved to keep the bank headquartered in Australia.

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