Macquarie senior executives take home multimillion-dollar pay packets despite regulatory missteps

Regulatory missteps have prevented Macquarie Group boss Shemara Wikramanayake from taking full advantage of bumper profits at the investment bank, relegated down the pay scales despite taking home more than $26 million.

Ms Wikramanayake was effectively penalised $7m in remuneration for the year to March 31, reflecting Macquarie’s misreporting of short-sale transactions and monitoring failures around the Shield Master Fund, which was promoted on its investment platform before collapsing.

The pay “adjustment” saw her take home $26.5m on an “awarded” basis, still up from $24m for the year earlier as Macquarie turned in its second-highest ever annual profit of $4.85 billion.

Six other senior Macquarie executives were also docked pay for a total penalty of $14.5m across the leadership team.

“We recognise that effective management of non-financial risk requires ongoing vigilance and a continued commitment to identifying and addressing issues as they arise, including making appropriate adjustments to remuneration,” Jillian Broadbent, the chair of the remuneration committee, said.

“The board acknowledges the reputational and financial impact of risk and regulatory matters arising during the year, including the short-selling transaction reporting and the Shield Master Fund matters, and the accountability of the CEO and relevant executive committee members for these shortcomings,” she said.

The pay penalty meant Ms Wikramanayake was the second highest paid Macquarie executive behind Simon Wright, the head of the bank’s flagship commodities and global markets business, where profits leapt after the Middle East war fuelled trading in oil and gas.

Mr Wright was also penalised for the regulatory shortcomings, but his pay still jumped 56 per cent to $35.4m after his division increased net earnings 49 per cent to $4.22b.

Earnings from Macquarie Asset Management surged 27 per cent to $2.6b, primarily driven by higher performance fees.

The banking and financial services business returned $1.6b, up 17 per cent, while Macquarie Capital increased profit 43 per cent to $1.49b.

Macquarie chair and former Reserve Bank of Australia governor Glenn Stevens, said the uncertainty of the war made forecasting difficult.

“The effects on the global economy, while there are some, are probably ⁠not too bad,” he said.

“If it’s a long duration event we will see effects on economic activity and inflation for the remainder of the year.

“It’s a very difficult shock for policymakers to deal with because it’s an adverse supply shock.

“Supply is constrained, prices rise and for macroeconomic policy that is a very difficult combination to deal with.”

Macquarie said the war was a factor in its decision not to buy back further shares, citing significant business growth over recent periods, together with the prevailing market conditions.

Directors declared a final dividend of $4.20 a share for the year, up from $3.90 in 2025, for a total payout of $7.

Macquarie shares leapt to a record high of $249.49 off the back of Friday’s results announcements before retreating to close 1 per cent lower at $239.33, valuing the group at $91.2b.