Executive remuneration in Australia’s health care and biotechnology sectors rose modestly in the last financial year, with a 7.2 per cent increase in total CEO pay, according to the 2025 ASX Health Care and Biotechnology Remuneration Report.
The annual analysis, based on data from 69 Australian-based Chief Executives, shows boards cautiously rewarding performance while navigating challenging capital-raising conditions and volatile markets.
Across the sector, fixed remuneration increased by 3.9 per cent, short-term incentives surged by 27.9 per cent, and long-term incentives rose slightly by 2.6 per cent. Collectively, these components lifted average total remuneration to $1.254 million for 2025.
The report reveals stark contrasts between large-cap and small-cap companies. CEOs leading companies valued over $1 billion saw total remuneration rise 9.9 per cent to $2.67 million, reversing three years of declines. Mid-cap CEOs ($100 million to $999 million) recorded an even more substantial 18.7 per cent rise, bringing average pay to $1.29 million, driven by a 41.6 per cent spike in short-term incentives and a 25.4 per cent rise in long-term incentives.
Meanwhile, small-cap CEOs representing almost half the sample experienced a 6.2 per cent decline in both fixed and total remuneration, with average total pay falling to $711,000. This contraction reflects tighter budgets, reduced access to capital, and board sensitivity to investor sentiment in a challenging market environment.
Despite these pressures, the resurgence of short-term incentives highlights a strong focus on rewarding milestone delivery, clinical progress, and operational achievements. However, long-term incentive vesting remains uneven, reflecting the volatile share-price performance that continues to characterise the biotech sector.
The remuneration analysis was prepared by Wexford Hayes, an independent Executive Search and Board Advisory firm with more than 20 years of specialist experience across Asia-Pacific. The report was authored by Lee Rochester, a senior consultant specialising in leadership appointments in health care, life sciences, and biotechnology. Wexford Hayes describes itself as a practical, relationship-focused advisory partner offering specialist expertise and value-aligned pricing models to support boards and executive teams.
The report concludes that boards across the sector are taking a pragmatic approach, balancing cost-containment with the need to retain experienced leadership as the industry faces funding constraints, increased competition for capital, and heightened regulatory pressures.