New Zealand chief executives are trailing behind other countries when it comes to performance pay because they want the safe option of a guaranteed salary, according to a study.
Human resources firm Sheffield looked at data on 504 chief executives, managing directors and general managers nationwide.
It said
56 per cent of chief executives received performance-based pay last year, up slightly on the previous year but down from a high of 69 per cent in 2003.
Jarrod Moyle, Sheffield reward team leader, said performance-related elements accounted for about 14 per cent of the total salary package of those who received it.
"The incidence of performance pay was steadily increasing up until 2003 ... but from there it has declined to its current level of 56 per cent," Moyle said.
In the US, pay packets included a 62 per cent performance pay element, while in the UK and Australia it was 35 per cent and 30 per cent respectively.
"On the whole, New Zealanders are not as motivated by financial gain as some of our colleagues overseas," Moyle said.
"In New Zealand, many Kiwis will work hard to get to a certain level of net worth and are then content to simply maintain this lifestyle.
"While we don't want to emulate the corporate greed we sometimes see offshore, we do need a greater drive among our leaders to achieve business success," he said.
Chief executives in Auckland were paid a median total salary of $297,670 compared to Wellington with $285,000.
The median total salary for chief executives in the public sector was $255,000 compared to $248,291 in the private sector.
Executives
* Median salary for Auckland: $297,670.
* Median salary for Wellington: $285,000.
* 9 per cent of CEOs are women.
* 56 per cent of CEOs get performance pay.
