A CEO, COO or CFO in the private retirement living and aged care sectors can expect to receive upwards of $600,000 remuneration – and higher – as consolidation increases the size and scale of organisations and boards look outside the sector to drive their organisations forward as the Royal Commission recommendations are rolled out.
Gregory Robinson, the Founder & Managing Partner for international executive and board recruitment firm Blenheim Partners, presented at last week’s LEADERS SUMMIT with Jim Hazel, whose experience as a board member and chair extends from Ingenia Communities and Bendigo and Adelaide Bank to COTA Australia.
Gregory bases this statement on the consolidation of the 1,500 residential and home care operators down to as few as 200 operators, who will share the $30 billion or more in Government funding.
With $100 million turnover operations the new norm, Gregory says new executives will be driving culture shifts as well as bottom line performance.
He also speculates that this increased consolidation among For Profit and Not For Profit operators will impact on the size of remuneration.
Executive salaries to rise across For profits and Not For Profits
For a top-level CEO recruited from outside the sector, he forecasts a base salary of upwards of $600,000 – more likely $800,000 – on the back of 50% short-and long-term incentives.
“I think in reality, Not For Profits may never match the private sector, therefore will need to have clarity in their messaging around purpose, growth and culture,” he stated.
“It might be trickier for non-listed companies to get that lateral person. Perhaps they may go for a base of $400,000 to $500,000 and provide a deferred bonus scheme to replace LTIs.”
However, he and Jim agreed that money was not the only factor – and the disruption facing the sector will prove attractive to top-tier executives looking for a challenge.
“This is not an easy gig and that’s very, very attractive,” Gregory said. “With a challenge like this, people want to put their hand up.”
Gregory says he expects most executives in this new sector to only spend three to five years in the role, with more ‘talent’ recruited from industries outside of the sector.
“Once we get the building blocks in place for the future through Government, it is a growth industry,” Jim added.
We will have the full story on Gregory and Jim’s predictions in this week’s issue of SATURDAY, in your inbox at 6am, Saturday, 27 March.