Construction consultant Trinity Consulting Group has announced a cut in the salaries of its top earners, bringing the company’s total pay-for-performance ratio down to just over 1:1, a drop of more than 1 per cent.
Trinity’s chief executive officer, Andrew Roper, said the company had reduced its pay-to-performance ratios in the past year, with pay-offs ranging from $500,000 to $750,000.
“As a result of these efforts, we’ve been able to reduce our overall compensation for our top earners to just under 1:2,” Mr Roper said.
The company’s top earners are paid in a fixed salary package, which varies from $250,000 up to $3 million, with some receiving compensation totalling more than $1 million.
Mr Ropers said Trinity had reduced pay-off ratios because the company was focusing on growing its revenue and improving efficiency.
“With a large number of our top executives in our team now on average earning more than three times the median wage, we’re seeing the impact of this on our overall pay-per-performance,” Mr Mr ROPER said.
“This is great news for our employees, our business, our clients and our shareholders.”
The company will be the first to announce an overhaul of its compensation structure, which Mr Ropes said would provide more transparency and accountability for the company.
The new pay-outs would be based on performance metrics and would include “net income, revenue, and cost of business”, which he said would be disclosed to shareholders.
“Our compensation strategy is designed to provide the best value for our shareholders and employees,” Mr Coker said.
He said the cuts would be in line with the company moving away from the traditional pay-out structure that had existed for several years.
“We want to bring transparency to our compensation, we want to provide transparency to investors, we think it’s a great time for investors to buy our stock,” Mr Lomax said.
Trinity is the world’s biggest construction contractor, with a portfolio of projects across Australia and overseas.
The majority of its projects are located in Victoria.
The top three pay-ers at Trinity were the same as in 2017, with chief executive Andrew Ropers and chief financial officer David Gough earning $1.3 million and $865,000 respectively.
Trinity has not announced the average pay-rate for its top executives since January 2017.
The changes will come into effect at the end of this year.
The latest salary data for Trinity is expected to be made public in June.
The news comes as Victoria’s construction industry is being targeted by a series of changes that will force it to overhaul its compensation system, including increasing the size of its payouts, reducing the number of employees in top positions and cutting staff numbers.
In March, the Victorian Government announced a plan to bring its compensation rules into line with international standards.
“The proposed changes to the compensation scheme will see our pay-scale structures and other aspects of the compensation package be more in line than they are currently,” a Victorian Government spokesperson said.
Mr Lompax said the changes to compensation would bring the total compensation package for its workforce from $3.2 million to $6.4 million, which is a drop from the current $5.3-million average pay.
Mr Cocker said the new changes were part of the company and the board’s efforts to bring efficiency to its operations.
“In a world of competition and growth, Trinity is well positioned to deliver the results and financial results that our shareholders expect,” Mr Gough said.