Average pay for chief executives of Australia's largest listed health care and biotechnology companies rose for a second consecutive year in 2026, while average pay at the smallest companies fell, according to a new benchmarking report.
The 'FY2026 Chief Executive Officer Remuneration Report' by executive search firm Wexford Hayes draws on the 2026 annual reports of 64 Australian-based chief executives. It found average total remuneration across the sector rose 3.4 per cent to $1.30 million, compared with a 7.2 per cent increase the previous year.
The report notes that "the sector average masks substantial differences between the three market capitalisation segments."
The 13 chief executives of companies valued above $1 billion received average total remuneration of $2.85 million, up 7.1 per cent. Fixed pay fell 2.8 per cent to $1.21 million, while short-term incentives rose 12.1 per cent and long-term incentives rose 17.9 per cent. Long-term incentives were recorded for 92 per cent of these executives and short-term incentives for 69 per cent.
"The rise in total remuneration was driven chiefly by larger incentives, rather than an increase in fixed remuneration," the report says.
Among the 22 companies valued between $100 million and $999 million, average total remuneration was unchanged at $1.29 million, following an 18.7 per cent increase the year before. A 3.4 per cent rise in long-term incentives offset a 1.5 per cent fall in fixed pay and a 1.1 per cent fall in short-term incentives. The proportion of chief executives receiving a short-term incentive fell from 79 to 77 per cent, and the proportion receiving a long-term incentive fell from 83 to 77 per cent. Median total remuneration in this group was $922,000.
The 29 companies valued below $100 million account for 46 per cent of the companies in the sector. Average total remuneration in this group fell 18.7 per cent to $578,000, following a 6.2 per cent decline the previous year. Fixed pay fell 1.0 per cent to $423,000. Average short-term incentives fell 52.7 per cent to $31,000, and long-term incentives fell 42.9 per cent to $124,000.
"The reduction was therefore concentrated in incentives," the report says.
Short-term incentives were reported for 39 per cent of chief executives in this group, down from 61 per cent the previous year, and average amounts among recipients were lower. Long-term incentives were reported for 82 per cent, compared with 85 per cent a year earlier.
Fixed remuneration accounted for about 73 per cent of total remuneration among companies valued below $100 million, compared with 42 per cent among companies valued above $1 billion.
The report states that changes in the companies sampled affected the result for the smallest segment. "Changes in the companies included also influenced the comparison," it says, noting that a substantial long-term incentive reported in FY25 was not part of the FY26 group. "The decline therefore reflects both changes in reported incentives and the composition of this segment."
According to the report, FY26 illustrates "how differently incentives can influence total remuneration across the sector."
"They supported further growth among the largest companies but accounted for most of the decline among the smallest," it says. "The overall sector increase should therefore be considered alongside the relevant market capitalisation segment when assessing remuneration."
