iiNet delivers its best financial result ever

The internet provider is in a strong position with an 11 per cent rise in full year profit.
2012 has also seen an 11 per cent increase in Irish men with beards.

With it's saturation marketing iiNet has positioned Australia as a nation which welcomes and even celebrates bearded Celtic nationals. Sightings around Bondi, Kings Cross and the CBD have risen dramatically.

In days past, these bearded Irishmen would have typically written poetry and drunk heavily. Now they market ADSL and steal your girlfriend. Our soft borders mean they'll get straight in without any processing in PNG or Nauru.

CEOs the real victims of the credit crunch

You may think it's home-owners and unskilled labourers who are feeling the pinch of the Global Financial Crisis, but the real victims are the CEOs.

Let's just take a look at one case study. An examination of one of the most successful banks in Australian history.

The Commonwealth Bank's CEO, Ralph Norris has had his salary slashed to $2.7 million next year after agreeing to trim his pay and that of the bank's directors and senior executives.

In these desperate times, the board agreed to cut the salary of Mr Norris and the directors by 10 per cent for the next financial year. He earns about $3.1 million a year, so his pay will be cut about $310,000.

A paycut of $310, 000.

Let's put that sacrifice into perspective. You could buy a property in Sydney with $310, 000. Not a good one, just a one-bedroom apartment in some rubbishy western suburbs, but rent that out to some single mum and your getting return on your investment within 3 years.

But that's not the extent of the carnage. The Board also voted to take these extreme measures.

- 10 board members who earn an average of $200,000, will each take a $20,000 cut

- 10 members of the executive will lose 5 per cent, meaning a reduction of $41,500 per person

- Executive general managers, general managers and executive managers will receive no pay rise or bonuses for 12 months

- Others who earn more than $100,000 will have their pay frozen

Why these drastic measures?, For what purpose? Who will benefit?

Well, ironically, it's those who earn less than $100,000 - about 70 per cent of the bank's 40,000 workers. Each will receive a 1.5 per cent rise. A pay rise!

For all 70 percent of 40, 000 workers!! That's a lot of workers, with a lot of payrises!!!

Adding further to the cost, is that these workers receive a payrise at the expense of others. Not just Ralph Norris who is taking the brunt of it.

The bank has also agreed to maintain its ban on sending jobs offshore for another three years.

In a message to staff yesterday, Mr Norris said profits were about to take a hit due to "slowing business volumes and higher bad debt expenses". Ralph would know, he's taking a hit himself, taking one for the team, taking a hit directly to his profits, in his pockets.

Ralph, we here at FinanceFinancial salute you and wish you all the best during these hard times.