The devil in the NBN detail

NBN Co's annual report has attracted criticism about executive pay and bonuses but it's the activation rates that are the real worry.

Last week’s release of NBN Co’s 2012 annual report attracted a chorus of criticism about the organisation’s executive pay and bonuses. A closer reading of the report reveals that the real focus of any scrutiny needs to be on the complexity of the project and the big risks to the successful delivery of the National Broadband Network.

Despite the negative headlines, NBNCo met the revised targets of their 2012 business plan with the project passing 212,000 premises against the projected 213,000. That number however, is less than half the 495,000 premises expected in the original plan released in 2010.

Giving bonuses to senior staff after missing those original targets attracted the criticisms of excessive executive pay, however concerned taxpayers should keep in mind average senior management remuneration at NBN Co’ is $827,000, just over a third of the $2.3 million received by Telstra's leadership and about the same as Fairfax’s average of $850,000.

Executive pay at NBN Co doesn’t appear excessive by industry standards and what taxpayers probably should be more concerned about is that there are eleven senior managers listed in the annual report.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles