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Childcare executives paid six-figure bonuses despite outrage over alleged abuse and safety failures Childcare executives paid six-figure bonuses despite outrage over alleged abuse and safety failures
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Generous salaries have sparked calls for boards to consider clawing back some of the money paid to bossesGenerous salaries have sparked calls for boards to consider clawing back some of the money paid to bosses
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Bosses at Australia’s largest for-profit childcare providers received pay rises and bonuses worth up to $500,000 last year, despite multiple safety breaches and the employment of a man subsequently charged with multiple child sexual offences.Bosses at Australia’s largest for-profit childcare providers received pay rises and bonuses worth up to $500,000 last year, despite multiple safety breaches and the employment of a man subsequently charged with multiple child sexual offences.
The generous salaries have sparked calls for boards to consider clawing back some of money, given outrage over safety failures and recent apologies from chief executives.The generous salaries have sparked calls for boards to consider clawing back some of money, given outrage over safety failures and recent apologies from chief executives.
The G8 Education chief executive, Pejman Okhovat, secured a short-term bonus worth $534,426 for meeting performance targets last year. His base salary was increased from $930,770 to $956,468 last year.The G8 Education chief executive, Pejman Okhovat, secured a short-term bonus worth $534,426 for meeting performance targets last year. His base salary was increased from $930,770 to $956,468 last year.
G8 Education provides annual bonuses to executives who meet performance targets related to financial performance, enrolment levels, staff retention, and safety and compliance.In 2024, it exceeded its target of centres meeting national quality standards.G8 Education provides annual bonuses to executives who meet performance targets related to financial performance, enrolment levels, staff retention, and safety and compliance.In 2024, it exceeded its target of centres meeting national quality standards.
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During a parliamentary inquiry on Tuesday, Greens MLC Abigail Boyd read a series of confirmed breaches at centres owned by G8 Education. These includeda child being slapped on the face in 2023 and others being exposed to mould in 2024. During a parliamentary inquiry on Tuesday, Greens MLC Abigail Boyd read a series of confirmed breaches at centres owned by G8 Education. These included a child being slapped on the face in 2023 and others being exposed to mould in 2024.
In April 2024, the New South Wales regulator confirmed staff at one G8 Education centre could not find a child when parents arrived for pickup. An investigation said the child was “found completely naked” with another in an outdoor playground.In April 2024, the New South Wales regulator confirmed staff at one G8 Education centre could not find a child when parents arrived for pickup. An investigation said the child was “found completely naked” with another in an outdoor playground.
In July the alleged sex offender Joshua Dale Bown, 26, was charged with more than 70 offences involving children, including at a Melbourne centre managed by G8 Education. Brown worked at the centre in early 2024. G8 Education has repeatedly apologised for “the pain this has caused”.In July the alleged sex offender Joshua Dale Bown, 26, was charged with more than 70 offences involving children, including at a Melbourne centre managed by G8 Education. Brown worked at the centre in early 2024. G8 Education has repeatedly apologised for “the pain this has caused”.
During the inquiry, Boyd asked Okhovat whether he reflected on whether his bonus could be “impacted by the recent events” including negative media attention and concern about safety.During the inquiry, Boyd asked Okhovat whether he reflected on whether his bonus could be “impacted by the recent events” including negative media attention and concern about safety.
“I personally don’t wake up every morning thinking about that – absolutely not,” Okhovat said. “My focus and attention are on running G8 as a large organisation providing high-quality service, with safety being its number one priority.”“I personally don’t wake up every morning thinking about that – absolutely not,” Okhovat said. “My focus and attention are on running G8 as a large organisation providing high-quality service, with safety being its number one priority.”
Boyd has questioned the commitment to child safety, given some of the bonus payments relate to commercial objectives. Okhovat disagreed and told the inquiry that incentives for occupancy rates rewarded “trust and confidence in the local community”.Boyd has questioned the commitment to child safety, given some of the bonus payments relate to commercial objectives. Okhovat disagreed and told the inquiry that incentives for occupancy rates rewarded “trust and confidence in the local community”.
Guardian Australia asked G8 Education whether the bonus payments were appropriate, given safety breaches at some of its centres. A spokesperson did not answer the question directly, but said its bonuses were transparently disclosed and reviewed on an annual basis.Guardian Australia asked G8 Education whether the bonus payments were appropriate, given safety breaches at some of its centres. A spokesperson did not answer the question directly, but said its bonuses were transparently disclosed and reviewed on an annual basis.
Tim Hickey, the chief executive of another for-profit provider, Affinity Education Group, told the inquiry he wasn’t sure whether his bonus payments of up to about $300,000 had been docked as a result of safety breaches.Tim Hickey, the chief executive of another for-profit provider, Affinity Education Group, told the inquiry he wasn’t sure whether his bonus payments of up to about $300,000 had been docked as a result of safety breaches.
The inquiry was told that breaches at Affinity childcare centres were 70% higher than the NSW average in 2024, up from 30% in 2021 when the company was bought by Quadrant Private Equity.The inquiry was told that breaches at Affinity childcare centres were 70% higher than the NSW average in 2024, up from 30% in 2021 when the company was bought by Quadrant Private Equity.
The inquiry was told that one of these breaches included a child being used as a “human mop” to wipe up their own vomit on two occasions.The inquiry was told that one of these breaches included a child being used as a “human mop” to wipe up their own vomit on two occasions.
Hickey told the inquiry his total pay package had increased over the past three years.Hickey told the inquiry his total pay package had increased over the past three years.
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Affinity Education was contacted on Wednesday for clarity about whether Hickey’s bonuses had been docked since 2021, but declined to comment.Affinity Education was contacted on Wednesday for clarity about whether Hickey’s bonuses had been docked since 2021, but declined to comment.
Brown worked at 11 Affinity childcare centres in Victoria during 2024, according to a list on its website.Brown worked at 11 Affinity childcare centres in Victoria during 2024, according to a list on its website.
Hickeysaid 90% of Affinity’s centres had either met or exceeded the national quality standard.Hickeysaid 90% of Affinity’s centres had either met or exceeded the national quality standard.
“I can say without doubt that recent events are more troubling than any I’ve seen in that time – and I am absolutely committed to doing everything within my control to ensure this never happens again,” Hickey said.“I can say without doubt that recent events are more troubling than any I’ve seen in that time – and I am absolutely committed to doing everything within my control to ensure this never happens again,” Hickey said.
The Australian Shareholders’ Association’s chief executive, Rachel Waterhouse, said she had long-held concerns about executive bonuses at for-profit childcare centres, given ongoing concerns about child safety.The Australian Shareholders’ Association’s chief executive, Rachel Waterhouse, said she had long-held concerns about executive bonuses at for-profit childcare centres, given ongoing concerns about child safety.
“Boards must ensure that any significant incentives are justified and meet public expectations,” Waterhouse said. “Where serious incidents occur, boards need to consider whether past performance-related incentives remain appropriate.”“Boards must ensure that any significant incentives are justified and meet public expectations,” Waterhouse said. “Where serious incidents occur, boards need to consider whether past performance-related incentives remain appropriate.”
The federal Greens spokesperson for early childhood education, Steph Hodgins-May, said families were “right to be outraged at executives pocketing bonuses for short-term KPIs while private providers charge parents through the roof and still deliver lower standards of care”.The federal Greens spokesperson for early childhood education, Steph Hodgins-May, said families were “right to be outraged at executives pocketing bonuses for short-term KPIs while private providers charge parents through the roof and still deliver lower standards of care”.
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