Market forces blamed for $12m in project boss salaries

25 of Victoria's road and rail project heads have been paid over the recommended maximum packages. (James Ross/AAP PHOTOS)

Market forces have been cited as the reason for the Victorian government paying 25 transport infrastructure project bosses more than $12 million a year in combined salaries.

A leaked report, published by the Herald Sun on Sunday, shows some public sector road and rail executives are earning twice as much as those in equivalent department roles.

Government Services minister Danny Pearson wrote to the Victorian Independent Remuneration Tribunal in 2021 to request advice on transport infrastructure chief salaries after private market competition.

The tribunal's advice indicated 16 of the 25 assessed executives were earning more than the maximum recommended packages for their roles as of mid-2022.

Rail Projects Victoria chief executive Evan Tattersall, who has since retired, was the highest annual earner at $814,251 - compared to the advised pay packet of $768,000 a year.

Other salaries revealed included those of North East Link chief operating officer ($748,755), Major Road Projects Victoria chief executive ($713,307) and Suburban Rail Loop executive general manager of rail and infrastructure delivery ($680,000).

Senior Victorian minister Lily D'Ambrosio argued the state government had to spend more to remain competitive with other states for senior roles in the crowded infrastructure construction market.

"This does put pressure on labour availability ... and we're also competing with investments in big infrastructure by the private sector," she told reporters.

"There's lots of pressures of course in terms of those infrastructure projects that exist across the country, and that is why we always need to have an eye to being able to retain or attract the best possible people to do these jobs."

Ms D'Ambrosio and other Victorian MPs were last month awarded a 3.5 per cent base salary increase by the independent tribunal.

Wage rises for lower level Victorian public sector workers are capped at three per cent, well below annual inflation.

Shadow Treasurer Brad Rowswell said Victorian taxpayers expected to get bang for their buck as their belts tightened amid the cost of the living crisis.

"Having a circumstance where you've got executive fat cats sitting in ivory towers far removed from the realities of a family kitchen table ... is completely out of step with community expectation," he said.

Budgeted costs and forecast completion dates have blown out for several major Victorian projects in recent years, including the trouble-plagued West Gate Tunnel. 

Mr Rowswell said the opposition did not have an issue with the government attempting to attract the best and brightest to lead major projects, but suggested the salaries must come with performance measures.

"This isn't Danny Pearson's money ... this is Victorian taxpayers' money," he said.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store