National Broadband Network Corporation (NBN Co) executives face having their massive bonuses slashed as the federal government looks to rein in largesse at the taxpayer-owned company.

About $1.5 million in bonuses paid to NBN bosses in 2021-22 came under scrutiny during Senate Estimates hearings on Tuesday, with Assistant Minister for Infrastructure Carol Brown conceding the payouts don’t align with community expectations.

It was revealed Communications Minister Michelle Rowland wrote to the NBN late last year to outline new expectations that bonuses for executives will be “restrained” before 2022-23 payouts.

Senator Brown, who was representing Ms Rowland at estimates, said the government has outlined some “areas of improvement” for the NBN.

The company last year approved a $697,000 bonus for CEO Stephen Rue, which came on top of his $2.1 million base salary.

Communications Minister Michelle Rowland said Australians expect value for money. Photo: AAP

“If you’re asking me would the community expect better? Yes,” Senator Brown said in response to questions about bonus largesse at the NBN.

NBN has paid almost $6 million in bonuses over the past three years despite persistent criticism about the speed and quality of its services.

‘Not a good look’

The company has most recently tried to hike prices for wholesale broadband, sparking warnings that household bills will increase. 

Greens Senator Sarah Hanson-Young said on Tuesday the bonus largesse was “not a good look” for the taxpayer-owned corporation.

“I don’t think there’s many Australians who think NBN Co is doing a particularly good job,” Senator Hanson-Young said.

“Surely that [the bonuses] are out of the realms of public expectations.”

In letters sent to NBN Co late last year the government asked it to review its remuneration payouts to ensure they properly reflected the company’s performance and are benchmarked against the industry.

Senator Brown said the government wants more information about how the NBN sets its performance targets and also reiterated the importance of transparency and equity in the way the company pays bonuses.

“Bonuses should be linked to performance and taxpayers’ money needs to be well spent,” Senator Brown said.

A spokesperson for Ms Rowland said taxpayers should “expect that corporate bonuses are based on service delivery, and ensure value for money for Australians”.

Commitment to improve NBN

“As part of the Albanese government’s commitment to deliver a better National Broadband Network for Australians, a Statement of Expectations was also delivered in December,” the spokesperson said.

“The statement guides NBN Co’s strategic direction as it remains in public hands, ensuring it remains focused on keeping internet costs low while delivering a world-class network for families, communities and businesses.

“It also provides guidance on the government’s expectations for the company to set a remuneration structure that is transparent, and ensures that executive remuneration is appropriately aligned to key performance indicators.”

Mr Rue has been paid $2.6 million in bonuses in the three years to 2021-22, according to NBN annual reports, which came on top of base salary payments of more than $1.8 million a year over that period.

Chief operating officer Kathrine Dyer has received $717,000 in bonuses over the same period, in addition to her salary of more than $750,000 a year.

All told, NBN has paid executives $5.7 million in bonuses since 2020, according to its annual reports.