Hi ziggy415 lol. I have a good accountant for over 25 years, who did apprenticeship with the IRD as an auditor. So no problems there and live off the interest from investments but am down a wee bit on SPK but who isn't. If it goes any lower will have to start a 3.50s club.
Sorry seeweed i cant join the 3.50 club but i will join the 4.50 club and at the time of purchase i thought it was an exclusive club 🤔
The figure of $50m staff savings, is that a net figure after redundancy costs ?
Redundancy costs are generally paid out in one year, whereas resultant salary savings carry on every year perpetually after. There were significant redundancy costs over FY2024, although these do not appear to have been separately declared. If you look at employee remuneration (AR2024 p77), you will see that the number of employees earning $100,000+ per year jumped from 215 to an astonishing 2688 over one year. However, this increase was largely due to the number of redundancy payments made over FY2024.
Taking the incremental increase in each wage band, and multiplying that number by the mid point of the wage band, then adding the result of all wage bands together will give us an estimate of the costs saved in making high salaried employees redundant. Above the $370.001 to $380,000 wage band, there were no significant increase in the numbers in those wage groupings.
Wage Band Average
Incremental Employees
Wage Bill Saved
$105k
281
$29.505m
$115k
272
$31.280m
$125k
287
$35.875m
$135k
256
$34.560m
$145k
281
$40.745m
$155k
260
$40.300m
$165k
193
$31.845m
$175k
128
$22.400m
$185k
107
$19.795m
$195k
95
$18.525m
$205k
46
$9.430m
$215k
54
$11.610m
$225k
37
$8.325m
$235k
34
$7.990m
$245k
14
$3.430m
$255k
12
$3.060m
$265k
11
$2.915m
$275k
8
$2.200m
$285k
4
$1.140m
$295k
11
$3.245m
$305k
11
$3.355m
$315k
15
$4.725m
$325k
3
$0.975m
$335k
5
$1,675m
$345k
5
$1.725m
$355k
2
$0.710m
$365k
3
$1.095m
$375k
3
$1.125m
Total
$373.56m
The total labour bill at Spark over FY2024 was $512m. Of course not all of that incremental total will represent wages. It will be wages and redundancy costs. The added total will also incorporate wage inflation over the year.
If we take wage inflation to be 7%, the actual 'like with like' savings in wages between FY2023 and FY2024, I estimate to be:
(1-0.07)($373.56m/2)= $174m
The actual wage bill saved will be less than this, because this 'saving' doesn't include wages that will be paid out to new employees hired over FY2025. So in this context, an ongoing saving in the wage bill of $50m per year looks reasonable and achievable.
SNOOPY
Last edited by Snoopy; Today at 08:29 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
Bookmarks