As revealed in Macquarie Group’s annual report for the year to March (FY21), Nick O’Kane, head of the commodities and global markets business at Macquarie Group, took home a total remuneration worth $26.3 million.
Looking at his fellow group heads, Martin Stanley of Macquarie Asset Management secured $19.5 million, Macquarie Bank boss Mary Reemst received $4.5 million, and banking and financial services group head and deputy managing director Greg Ward was paid $8.8 million.
Macquarie Capital group co-heads Michael Silverton and Daniel Wong received $6.2 million and $7.8 million respectively.
On the other hand, chief executive Shemara Wikramanayake was paid a total $20.6 million, close to $6 million less than Mr O’Kane. Under its reasoning for her salary, the annual report credited her for steering the ship through the rocky waters of COVID-19 and achieving Macquarie’s highest profit on record.
Macquarie recorded a net profit after tax (NPAT) of $3 billion for FY21, up 10 per cent on the year prior. The total was vastly generated in the second half of the year, when the company produced $2 billion, managing to double its profit on the prior six months.
But assets under management were down by 6 per cent to $563.5 billion, with Macquarie citing foreign exchange impacts and a reduction in contractual insurance assets in the investment management division.
Ms Wikramanayake commented the diversity of Macquarie’s businesses alongside its prudential risk management, had seen it perform well despite “challenging market conditions”.
“Macquarie’s performance reflects our involvement in areas of deep structural need in the global economy and the commitment of our staff to work with clients to address opportunities and challenges in our economies,” Ms Wikramanayake said.
The group’s annuity-style businesses, including Macquarie Asset Management, Banking and Financial Services and businesses in Commodities and Global Markets (CGM) produced a combined net profit contribution of $3.3 billion, a 4 per cent slip on the previous year.
The CGM segment was the strongest-performing division, with its FY21 profit of $2.6 billion surging by 50 per cent from the prior year.
Macquarie Asset Management had produced $2 billion in profit, down 5 per cent from the year before, while the banking and financial services business stayed flat year-on-year with $771 million.
Meanwhile the markets-facing segments, Macquarie Capital and most businesses in CGM, delivered a net profit of $2.7 billion, growing 39 per cent from FY20.
Macquarie Capital had produced a profit contribution of $651 million, falling 15 per cent year-on-year, due to lower M&A and debt capital markets activity.
Shareholders were awarded an ordinary dividend of $3.35 per share (40 per cent franked), a fair rise from the FY20 payout of $1.80 per share.
Despite the strong results, Macquarie has indicated it will maintain a “cautious stance, with a conservative approach to capital, funding and liquidity” as its response to the current environment.
The group is watching for how COVID and vaccine distribution play out, as well as market conditions and tax or regulatory changes, among other factors.
Macquarie’s net operating income of $12.7 billion was up by 4 per cent on FY20. International income had accounted for the majority (68 per cent).
The group had also increased its staff count over the year, employing 16,459 people as at 31 March, a 4 per cent increase.
Macquarie has also flagged that Verena Lim, senior managing director of Macquarie Asset Management (MAM) in Singapore is set to replace Ben Way as Macquarie’s Asia CEO from July, following his appointment to group head of Macquarie Asset Management.
