Gentrack CEO Gary Miles’s $17.3m payday shatters New Zealand records

Key facts

• Gary Miles received $17.3 million total remuneration in the past year.
• The bulk ($16.35m) came from vesting of 1.3 million performance share rights.
• Base salary was $898,000; superannuation $49,000.
• Miles declined a 40% short-term bonus, redirecting it to employee pool.
• Previous NZ CEO record: John Cullity (Ebos) at $7.3m (2024) and $8.4m (2023).
• Gentrack market cap is ~$940m; shares traded at $8.35 recently, down from $14.20 high.
• Long-term incentive scheme approved Oct 2023, with performance rights up to 9.437m shares.
• Shares hit $10.00 in June 2024 after strong first-half results.

A record-breaking pay package

Gary Miles, chief executive of Gentrack Group, has become New Zealand’s highest-paid company boss after pocketing $17.3 million in the past financial year, according to the company’s annual report. The sum more than doubles the previous record held by former Ebos CEO John Cullity, who received $7.3 million in 2024 and $8.4 million in 2023. The bulk of Miles’s remuneration — $16.35 million — came from the vesting of 1.3 million performance share rights granted under a long-term incentive scheme introduced in 2020. On top of that, he earned a base salary of $898,000 and superannuation benefits of $49,000. Miles also qualified for a short-term incentive bonus of 40% of his base salary, but chose not to take it. Instead, he directed that money into the bonus pool for the company’s employees.

The incentive scheme that paid off

The performance share rights were part of a long-term incentive plan approved by shareholders at a special meeting in October 2023. The scheme covered the 2024, 2025 and 2026 financial years and authorised the issuance of up to 9.437 million new shares, or performance rights, to Gentrack’s executive team — including up to 2.454 million for Miles. At the time of approval, Gentrack shares traded at $4.80. The incentive scheme stipulated that no rights would vest unless the share price exceeded $5.00, with full vesting only if it topped $10.00. That threshold was reached in June 2024, after the company announced a strong first-half result. Since hitting a high of $14.20 in December 2024, the stock has declined and recently traded at $8.35.

From pandemic lows to market darling

Gentrack’s turnaround under Miles has been dramatic. During the early days of the Covid-19 pandemic, the company’s share price tumbled to $1.20 as border closures stifled its airport customers. Problems were compounded by a financial crisis affecting Gentrack’s water utility clients in the United Kingdom. Miles, who took the helm in 2020, is widely credited with driving the firm’s recovery. Gentrack makes software for airports and utilities, and now generates most of its revenue offshore. The company’s current market capitalisation stands at about $940 million, placing it alongside Sky City Entertainment Group but well below New Zealand’s largest non-bank listed company, Fisher & Paykel Healthcare, which is valued at $21.8 billion.

Shareholder scrutiny and the pay debate

Miles’s remuneration has drawn close attention from the New Zealand Shareholders’ Association, which has argued that the performance hurdles in the incentive scheme may not be high enough. The association has not publicly commented on the latest payday, but its previous concerns highlight ongoing debate about executive compensation in New Zealand. The $17.3 million package is the largest ever for a CEO of an NZX-listed company, surpassing the previous highs set by Cullity. It also dwarfs the average KiwiSaver balance, which fell by $5 billion in the March quarter to $136.4 billion.

What comes next for Gentrack and Miles

Gentrack’s share price has softened from its December peak, and the company faces the challenge of sustaining growth amid global economic uncertainty. The long-term incentive scheme still has two years to run, with further performance rights potentially vesting if the share price recovers. Miles’s decision to forgo his short-term bonus in favour of employees may burnish his reputation, but the scale of his payday ensures that the debate over CEO compensation in New Zealand will continue. For now, he stands alone at the top of the country’s executive pay rankings.

The bottom line

• Gary Miles earned $17.3m, more than double the previous NZ CEO record.
• The payday was driven by vesting of performance shares tied to Gentrack’s share price hitting $10.
• Miles declined a 40% short-term bonus, redirecting it to staff.
• Gentrack’s market cap is ~$940m; shares have fallen from $14.20 to $8.35.
• The incentive scheme was approved in Oct 2023 and runs through FY2026.
• Shareholders’ Association has questioned whether performance hurdles are sufficiently challenging.