CEOs prove pay is not performance

(Image: Getty)

Sat, 04 Oct 2025

A common complaint in the public sector is “we don’t get high-quality executives because we don’t pay as much as the private sector”. Another one is: “Chief executives in NZ aren’t as good because we don’t pay as much as Australia or the US.” This always strikes me as nonsense thinking, because it assumes that every dollar someone is paid implies more value wrought. If they’re paid so goddamn much, they must be good!IncentivesLet’s reverse engineer that a little. By this thin...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

On the Money

On the Money: Kathmandu, the Warehouse, Luxon, and more

Your weekly dose of corporate fun.

Victoria Young 5:00am

Technology Opinion

Altman’s AI power grab is tone deaf and infeasible

A bit more nuance and creativity, plus a dash of realism, is in order.

Bloomberg 5:00am

Altman’s AI power grab is tone deaf and infeasible

World

Can China save itself if the rest of the world won’t?

Beijing finds it harder to export the consequences of bad economic decisions.

The Wall Street Journal 5:00am

Can China save itself if the rest of the world won’t?

Sponsored

Fiji’s exclusive side revealed

Private islands and 5-star luxury, closer than you think.

Tourism Fiji

Sponsored

The double edge of AI in cyber security

Artificial intelligence has the potential to become both a lifeline and a liability for modern organisations, as a revolutionary tool capable of spotting threats at lightning speed, but also the ultimate weapon in the hands of cybercriminals.

Spark