Executive bonuses will need to be justified in a review of NBN Co, new communications minister says

NBN Co will need to demonstrate that the targets it sets for bonus payments to executives represent actual performance, under a review brought on by the new Labor government.

Communications minister, Michelle Rowland, said NBN Co targets would be considered as part of the review of government-owned business bonuses initiated under the Albanese government, which also includes Australia Post.

Following performance bonus guidance developed by the former government, NBN Co in November ditched most short-term incentive payments in exchange for payrises that on average amounted to 64% of the bonus payments. Short-term incentive bonuses for the most senior executives in the company were retained.

As the shareholder minister for NBN Co, Rowland speaks highly of the work being undertaken by the company.

Labor has promised to adopt the $2.9bn NBN expansion plans pledged by the Morrison government to upgrade wireless and offer full fibre upgrades to 2m premises. It also promised to go one step further and upgrade an additional 1.5m homes for a further $2.4bn.

Rowland said those additions are now under active consideration and the government is committed to keeping its election promises. The minister noted that the debt taken on by the former Coalition government, along with rising interest rates, would present a challenge for the project.