Sydney, Australia, September 30, 2026 — As Australian boards compete for globally mobile executive talent while facing heightened governance and investor scrutiny, new data shows CEO packages continuing to rise. Diligent Market Intelligence’s Executive Compensation Report has revealed median granted CEO pay at ASX 200 companies rose 9.8% in 2025 to reach AU$5.2 million with realised pay rising by 10.6%.
The ASX 300 recorded similar upward movement, with median granted CEO pay increasing 4.8% to AU$4.2 million and realised pay rising 23%.
“Executive remuneration is becoming an increasingly important governance issue for Australian boards as they navigate global competition for senior executive talent,” said Andrew Amos, Vice President, APAC at Diligent.
“The data shows CEO pay continuing to rise, but the bigger shift is in how executives are being rewarded, with greater emphasis on long-term incentives and performance. For boards, the challenge is ensuring pay remains clearly aligned with strategy, shareholder interests and long-term value.”
Australian companies increase long-term incentives
Australian companies are gradually shifting a greater proportion of CEO remuneration toward long-term incentives.
Long-term incentives accounted for 45% of median granted CEO pay in the ASX 200 in 2025, up from 42% in 2024 and 39% in 2023. Median granted long-term incentive pay reached AU$2.1 million in 2025, compared with AU$1.8 million in 2024 and AU$1.4 million in 2023.
At the same time, base pay has fallen as a proportion of the overall remuneration package, accounting for 33% of median granted CEO pay at ASX 200 companies in 2025.
Regulation shapes Australia’s executive pay environment
Australia’s executive remuneration framework differs from several other major markets, with regulatory requirements influencing how pay is designed, disclosed and approved. The country’s “two-strikes rule” requires a board spill vote if a company’s remuneration report receives more than 25% opposition at two consecutive meetings.
In financial services, APRA’s CPS 511 standard requires significant financial institutions to defer at least 40% of variable remuneration for certain senior executives and 60% for CEOs over periods of four to six years. APRA also updated its CPG 511 remuneration guidance in May 2026, reinforcing that executive pay should encourage responsible risk-taking and include consequences where poor risk outcomes occur.
These requirements can influence the ability of Australian companies to compete for senior executives internationally.
“When you compare pay practices to other markets, Australia is somewhat behind, or at least isolated by, major global trends,” said Michael Robinson, principal at Guerdon Associates in the Executive Compensation Report. “That’s made Australian pay less competitive globally, which is a real constraint when you’re competing for talent.”
Robinson points to the financial services sector, where differences between Australian and UK remuneration frameworks can affect competition for executives. Financial services in Australia are more highly regulated and have longer deferral periods, making it harder to compete with markets such as the UK, where pay levels have risen and remuneration rules have become less restrictive.
Investor support remains strong as scrutiny continues
Despite rising pay levels and evolving remuneration structures, investors have continued to broadly support Australian remuneration reports. Average investor support for advisory remuneration reports at ASX 200 companies held steady at 90.6% in 2025.
Amos concluded, “As executive pay evolves, boards will need to balance global competitiveness with the expectations of Australian investors. The key will be ensuring remuneration decisions are transparent, defensible and clearly justified.”
To download Executive Compensation in 2026, which includes data tracking pay trends across the U.S., Europe, Canada and Australia, click here.
About Diligent
Diligent is the AI leader in governance, risk and compliance (GRC) solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com.
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