Understanding your ceo salary: gross pay, package, and take-home

What a 'ceo salary' really means

When you see a job ad quoting a ceo salary, it is rarely the amount that lands in your bank account. The figure could be base salary, total package (including super), or even a 'total remuneration' figure that adds bonuses, shares, and perks. Understanding the difference is vital for budgeting and negotiating.

The numbers from the Australian Taxation Office

The ATO’s latest taxation statistics (2023–24) show that the median salary or wage income for people who reported their occupation as 'Chief executive officer' was $80,000. The average was $126,813. This data covers 237,168 individuals, from sole traders to ASX100 leaders. Because it only includes salary or wage income (not super, dividends, or capital gains), it understates total earnings for many CEOs.

The ASX200 picture

For CEOs of Australia’s largest listed companies, pay is dramatically higher. The Australian Council of Superannuation Investors (ACSI) reported that median realised pay for ASX100 CEOs was $4.15 million in FY24. Realised pay includes cash bonuses, vested shares, and other incentives. The highest-paid Australian-based CEO in their sample took home $39.55 million. These figures are a world away from the ATO median.

What is included in a CEO package?

A typical CEO package might include:

• Base salary (the fixed cash component)
• Superannuation guarantee (12% from 1 July 2026, capped at $270,830 contribution base)
• Short-term incentive (annual bonus, often paid in cash or shares)
• Long-term incentive (performance rights or options that vest over years)
• Other benefits (car, health insurance, relocation costs)

When a job ad says 'ceo salary $300,000', check whether that is base only or total package. If it is base, you will also receive super on top. If it is total package, super is included in that figure.

From gross to take-home

Once you know your gross salary, you need to subtract:

• Income tax (using 2026–27 rates: nil up to $18,200, then 15c per $1 up to $45,000, 30c up to $135,000, 37c up to $190,000, and 45c above that)
• Medicare levy (2% of taxable income, with reduced rates for low incomes below $28,011 single threshold)
• Other deductions (HELP/HECS repayments, salary sacrifice arrangements, or the Medicare levy surcharge if you do not have appropriate private hospital cover)

Super is not deducted from your take-home pay if the salary is quoted as 'plus super'. If the salary is quoted as 'including super', then the employer is using part of the package to meet their super obligation.

Example: $200,000 base salary

For a resident with no other income or deductions, using 2026–27 rates:

• Tax on $200,000: $51,370 on first $190,000 plus 45c on the remaining $10,000 = $4,500, total $55,870
• Less Low Income Tax Offset (LITO): at $200,000, LITO is nil
• Medicare levy: 2% of $200,000 = $4,000
• Total deductions: $59,870
• Take-home pay: $140,130 per year, or about $5,389 per fortnight

This is before any salary packaging or voluntary super contributions. Use the Take-home pay calculator for your specific situation.

The Medicare levy thresholds

The latest published single-person Medicare thresholds are $28,011 and $35,013. If your taxable income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay 10c per $1 over the lower threshold. Above $35,013, you pay the full 2%. For most full-time CEO salaries, the full 2% applies.

Why the mix-up matters

If you are negotiating a ceo salary, always clarify whether the figure is base, package, or total remuneration. A $250,000 package might leave you with only $170,000 take-home after tax and Medicare, plus you still need to account for super if it is included. Knowing the difference helps you compare offers and plan your finances.

Further reading

• Tax and Medicare – detailed breakdown of rates and offsets
• Super – how the super guarantee works and caps
• Average pay – compare CEO pay to other occupations