High times for Babcock bosses

The key executives of investment group Babcock & Brown have enjoyed healthy boosts to their salary packages for 2007, although the mix has changed dramatically following extensive changes to the company's remuneration scheme.

CEO Phil Green tops the list again with a total package of $22.1 million (up from $17.3 million), and is followed by London-based infrastructure head Peter Hofbauer with $19.9 million ($14.6 million).

Then follows the US-based head of aircraft operating leasing Steve Zissis ($17.1 million vs $10.8 million), Tokyo-based real estate head Eric Lucas ($15.5 million vs $14.8 million) and the New York-based head of US infrastructure Michael Garland ($14.1 million vs $7.3 million).

The only senior executive to suffer a significant fall in earnings is head of corporate and structure finance Robert Topfer (down to $12.2 million from $14.9 million), although Asia regional head Michael Maxwell eases to $4 million from $5 million, and chairman and co-founder Jim Babcock's compensation is down to $6.5 million from $7.3 million.

A new addition to the list is global capital markets head Trevor Loewensohn, who debuts with $6.25 million after making the switch from a senior investment banking role at UBS.

CFO Michael Larkin receives $4.7 million and newly appointed general counsel Margaret Cole receives $2.3 million.

The other notable aspects of the salary report include the relatively modest base salaries (all around $365,000, or a mere $1,000 for every day of the year), and the sharp slump in short term bonuses following the recalibrating of the remuneration scheme.

For Green, this meant that 20 per cent of his package came in cash, just under 40 per cent in shares, with 15.7 per cent coming in "fund appreciation rights”, which is a pool of specialist funds that generate much of the company's earnings, and just over 18 per cent in bonus deferral rights.