Gentrack chief Gary Miles has smashed New Zealand’s CEO pay records – pocketing an eye-watering $17.3 million in the past year.

The bumper payday, revealed in the company’s freshly released annual report, dwarfs previous highs and cements Miles as the country’s most richly rewarded boss of an NZX-listed company by a long shot.

The bulk of the payment resulted from the vesting of 1.3 million performance share rights, which were awarded under a long-term incentive scheme introduced in 2020.

Those shares had a market value of around $16.35m when they vested. On top of that, Miles received a base salary of $898,000 and superannuation benefits of $49,000, taking his pay to more than $17m.

Miles also earned a short-term incentive bonus of 40% of his base salary, which he chose not to take and instead invested that money into the bonus pool for the company’s employees.

The CEO pay package is more than double the previous highest-paid New Zealand company chief executive, former Ebos CEO John Cullity, who received $7.3m in 2024 and $8.4m in the 2023 financial year.

Miles’ remuneration is closely watched by the New Zealand Shareholders’ Association, which has argued the performance hurdles are potentially not high enough.

Gentrack, which makes software for running airports and utilities, does most of its business offshore. It has a current market capitalisation of about $940m, which puts it alongside the likes of Sky City Entertainment Group, but well below our largest non-bank listed company – Fisher & Paykel Healthcare ($21.8 billion).

Gentrack’s remuneration framework was approved at a special meeting in October 2023 when a majority of Gentrack shareholders voted in favour of the long-term incentive scheme, covering the 2024, 2025 and 2026 financial years, which saw up to 9.437 million in new shares, or “performance rights” issued to the Gentrack executive team – including up to 2.454 million for Miles as chief executive.

At the time, Gentrack shares were at $4.80. The incentive scheme did not kick in until the stock passed $5.00, with the full performance rights only awarded if it topped $10.00 – which was hit in June 2024, after the company announced a strong first-half result.

Since hitting a high of $14.20 in December 2024, the share price has trended down and recently traded at $8.35.

Gentrack has performed extremely well since the early days of the Covid pandemic, when its share price tumbled to $1.20 when the company’s airport customers were stifled by border closures.

Problems were compounded when a financial crisis hit Gentrack’s water utility customers in the UK.

Miles, who took the reins in 2020, is credited with driving the firm’s comeback.

Gentrack CEO Gary Miles in the NZME offices. Photo / Cameron Pitney

Gentrack’s annual report notes that the CEO and executive remuneration is reviewed by the board of directors each year.

“The board works closely with and is advised by Gentrack’s people and culture committee, considering market remuneration data benchmarks, achievement of performance goals and factoring in creation of long-term sustainable shareholder value.”

In its latest full-year result, for the year to September 30, Gentrack missed some analysts’ expectations, but pleased investors with new contract announcements, including Pennon Water in the UK.

It reported revenue of $230.2m, up 7% year-on-year.

Earnings before interest, taxation, depreciation and amortisation (ebitda) increased 17.8% to $27.8m, although came in slightly under analysts’ expectations.

Net profit was above expectations at $20.9m, a 119% increase on the previous year, mostly because of foreign exchange gains.

Duncan Bridgeman is the managing editor of NZME Business News, overseeing the Business Herald and BusinessDesk.