Compensation InsightHow IAG Pays
Insurance Australia Group's career levels, compensation by role, STI/LTI incentive structure, Enterprise Agreement, executive pay, and operations across Australia and New Zealand.
At a Glance
Career Level Hierarchy
IAG uses a structured career framework across ~14,000 employees in Australia and New Zealand. The company operates under the Banking, Finance and Insurance Award and its own Enterprise Agreement (2024).
Executive Leadership (above I8)
Insurance Industry Context
IAG's workforce spans claims processing, underwriting, actuarial, contact centre, technology/data, and corporate functions. The 2024 Enterprise Agreement covers the majority of non-executive staff with guaranteed conditions including 20 weeks parental leave and 5 days myLeave. Staff above Senior Manager level are typically on individual contracts with STI/LTI eligibility.
Compensation by Level
Total compensation breakdown for Sydney, Australia. All values in AUD.
| Level | Title | Base (Range) | Variable % | Total Comp (Range) | Equity |
|---|---|---|---|---|---|
| I1 | Graduate / Entry 0–2 yrs | A$62K – A$75K | 5% | A$65K – A$82K | Employee Share Plan |
| I2 | Analyst / Officer 1–4 yrs | A$72K – A$95K | 8% | A$78K – A$105K | Employee Share Plan |
| I3 | Senior Analyst / Specialist 3–7 yrs | A$95K – A$130K | 10% | A$105K – A$148K | Employee Share Plan |
| I4 | Manager 5–10 yrs | A$130K – A$170K | 15% | A$150K – A$200K | STI eligible |
| I5 | Senior Manager 8–14 yrs | A$170K – A$215K | 20% | A$205K – A$270K | STI + 50% deferred |
| I6 | Associate Director / Head of 10–18 yrs | A$200K – A$250K | 25% | A$255K – A$330K | STI deferred + LTI |
| I7 | Director / Executive Manager 14–22 yrs | A$240K – A$310K | 30% | A$315K – A$420K | Perf. rights + deferred STI |
| I8 | General Manager / Executive 18+ yrs | A$310K – A$500K | 40% | A$440K – A$760K | Full LTI + perf. rights |
Source: Glassdoor, PayScale, Levels.fyi, IAG Annual Report FY2024, IAG Enterprise Agreement 2024. Australian values include superannuation (13%).
Total Compensation Range by Level
Salary by Career Stream — Australia
Breakdown by role across IAG's key business areas. All figures in AUD per year. Average includes base salary; variable pay is additional.
Claims
| Role | Average | Range | P90 |
|---|---|---|---|
| Claims Officer (Entry) | A$58,000 | A$52K–A$66K | — |
| Claims Consultant | A$63,600 | A$56K–A$72K | A$82K |
| Motor Claims Consultant | A$52,500 | A$48K–A$58K | — |
| Property Claims Consultant | A$62,000 | A$55K–A$70K | — |
| Senior Claims Consultant | A$78,000 | A$70K–A$88K | A$95K |
| Claims Manager | A$115,000 | A$100K–A$135K | — |
Underwriting
| Role | Average | Range | P90 |
|---|---|---|---|
| Underwriting Assistant | A$60,000 | A$55K–A$65K | — |
| Underwriter | A$85,000 | A$75K–A$95K | A$110K |
| Senior Underwriter | A$141,800 | A$120K–A$165K | A$210K |
| Underwriting Manager | A$155,000 | A$135K–A$175K | — |
Technology & Data
| Role | Average | Range | P90 |
|---|---|---|---|
| Software Engineer | A$116,000 | A$100K–A$136K | — |
| Senior Software Engineer | A$148,000 | A$130K–A$170K | — |
| Data Engineer | A$135,000 | A$115K–A$160K | — |
| Data Architect | A$185,000 | A$170K–A$200K | — |
| Technical Program Manager | A$280,500 | A$230K–A$330K | — |
| Cyber Security Analyst | A$107,000 | A$95K–A$115K | — |
Actuarial
| Role | Average | Range | P90 |
|---|---|---|---|
| Actuarial Analyst | A$87,600 | A$79K–A$101K | A$110K |
| Actuary | A$145,000 | A$120K–A$180K | A$228K |
| Senior Actuary | A$180,000 | A$155K–A$210K | — |
| Chief Actuary | A$250,000 | A$220K–A$300K | — |
Leadership (Cross-Function)
| Role | Average | Range | P90 |
|---|---|---|---|
| Senior Manager | A$190,000 | A$170K–A$215K | — |
| Associate Director | A$215,000 | A$190K–A$250K | — |
| Principal | A$213,000 | A$181K–A$263K | A$341K |
| Executive Manager | A$236,500 | A$210K–A$310K | A$495K |
| General Manager | A$350,000 | A$280K–A$500K | — |
Source: Glassdoor, PayScale, Levels.fyi, Indeed, IAG Annual Report FY2024. P90 = 90th percentile where available.
Variable Pay & STI Payout History
IAG's STI is funded based on the Group Balanced Scorecard (BSC) outcome. The BSC includes financial metrics (NPAT), strategic progress, and ESG measures. Individual outcomes depend on the BSC × individual performance.
5-Year BSC Outcome (% of Target STI Pool)
Variable Pay % by Level
CEO STI History (% of Target)
| Year | CEO | STI Outcome | Note |
|---|---|---|---|
| FY2020 | Nick Hawkins | Reduced | COVID + bushfires; first year as CEO |
| FY2021 | Nick Hawkins | ~65% | Recovery; improved discipline |
| FY2022 | Nick Hawkins | ~20% | East coast floods; catastrophe losses |
| FY2023 | Nick Hawkins | ~80% | Strong financial performance |
| FY2024 | Nick Hawkins | ~95% | Record margins; NPAT A$898M |
Equity & Incentive Structure
IAG uses a traditional STI + LTI structure. For executives, 50% of STI is deferred as Deferred Award Rights (DARs). LTI is delivered via Equity Performance Rights (EPRs).
Active Plans
Executive STI Split (50/50)
STI/LTI Target by Level
| Level | STI Target (% of FR) | Deferral | Instrument |
|---|---|---|---|
| I1–I3 | 5–10% | None | Cash only + Employee Share Plan |
| I4 | 15% | None | Cash STI |
| I5 | 20% | 50/50 split | Cash + DARs |
| I6 | 25% | 50/50 split | Cash + DARs + LTI eligible |
| I7 | 30% | 50/50 split | Cash + DARs + EPRs |
| I8 | 40% | 50/50 split | Cash + DARs + EPRs (full LTI) |
| Group Exec | 50–75% | 50/50 split | DARs + EPRs + shareholding req. |
| CEO | 100% STI + 100% LTI | 50/50 STI split | DARs + EPRs; 200% of base shareholding |
LTI — Equity Performance Rights Details
- Instrument: Equity Performance Rights (EPRs) — each entitles holder to one IAG share
- Performance period: 4 years
- Hurdle 1 (50%): Reported Return on Equity (ROE) relative to WACC (range: 1.4–1.9x)
- Hurdle 2 (50%): Relative Total Shareholder Return (TSR) vs top 50 industrials in S&P/ASX 100
- No retest: if hurdles not met, rights lapse permanently
- FY20 LTI tranche: 0% vesting (tested June 2023 — failed both hurdles)
- DARs expire 7 years from grant date
Employee Share Plan
- All eligible employees can participate
- Employees contribute up to A$900/year; IAG contributes A$100
- Shares purchased at market price — up to A$1,000 total per year
- Oct 2025: 1,588,590 performance rights + 2,054,340 award rights issued
- CEO shareholding requirement: 200% of base pay over 4-year accumulation
- Other executives: 100% of base pay over 4–5 years
ASX Insider Trades & Equity Activity
Disclosed to ASX under Corporations Act. Most acquisitions reflect vesting of performance rights or deferred award rights under the LTI/STI plans.
| Date | Person | Role | Type | Shares | Price (A$) | Value |
|---|---|---|---|---|---|---|
| Oct 2025 | Executive KMP (various) | Group Leadership Team | Acquisition | 1,588,590 | Rights vesting | Deferred equity |
| Oct 2025 | Executive KMP (various) | Group Leadership Team | Acquisition | 2,054,340 | Rights vesting | Deferred equity |
| Oct 2025 | Various KMP | Group Leadership Team | Disposal | 100,470 | Rights vesting | Deferred equity |
| Aug 2024 | Nick Hawkins | CEO & MD | Acquisition | 245,000 | Rights vesting | Deferred equity |
| Jun 2024 | Tom Pockett | Chairman | Acquisition | 15,000 | A$7.85 | A$118K |
| Mar 2024 | Nick Hawkins | CEO & MD | Disposal | 50,000 | A$6.42 | A$321K |
| Feb 2024 | William McDonnell | CFO | Acquisition | 20,000 | A$6.15 | A$123K |
| Dec 2023 | JoAnne Stephenson | Non-Exec Director | Acquisition | 8,000 | A$5.80 | A$46K |
Recent Equity Grant Activity
In October 2025, IAG issued 1,588,590 performance rights and 2,054,340 award rights under its Employee Incentive Scheme. In the same period, 100,470 performance rights and 20,800 award rights lapsed due to unmet vesting conditions. The CEO holds shares worth approximately A$6.97M (0.036% of the company), meeting the 200% of base pay shareholding requirement.
NED Shareholding Requirement
Non-Executive Directors must accumulate and hold ordinary IAG shares equal to their annual board fee within 3 years of appointment. The total NED fee pool is capped at A$3.5M per annum (shareholder-approved at the 2013 AGM). Board fees are inclusive of superannuation.
Source: ASX announcements, IAG Annual Report FY2024, TipRanks.
Executive Compensation — FY2024
| Year | FR | Total | Note |
|---|---|---|---|
| FY2020 | A$1.8M | ~A$2.4M | First year as CEO; COVID; reduced STI |
| FY2021 | A$1.8M | ~A$3.1M | Recovery; STI ~65% of target |
| FY2022 | A$1.8M | ~A$2.2M | Floods; STI ~20% of target; 0% LTI vest |
| FY2023 | A$1.8M | ~A$2.9M | No exec pay increases; strong profits |
| FY2024 | A$1.84M | A$5.23M | 78% increase; record insurance profit |
Senior Leadership Compensation
Executive compensation at IAG uses a structured STI/LTI framework. STI: 50% cash, 50% deferred as DARs. LTI via Equity Performance Rights (EPRs). Subject to APRA CPS 511 deferral requirements.
APRA CPS 511 Remuneration Requirements
- IAG is APRA-regulated as a general insurer — CPS 511 applies to remuneration design
- 50% of STI deferred as Deferred Award Rights (DARs) for senior executives
- LTI via Equity Performance Rights (EPRs) with 4-year performance period
- Malus and clawback provisions apply to all variable remuneration
- Board retains discretion to adjust or reduce incentive outcomes to zero
- No hedging of unvested equity awards permitted
Benefits & Perks
Financial
Leave
Career & Development
- IAG Academy — award-winning learning platform
- Free LinkedIn Learning for all employees
- Udemy for Business access
- Brilliant Me — flagship career development program
- Internal secondments across brands and divisions
- Leadership mentoring and pathway programs
- 18-month Graduate Program (permanent from Day 1, AU & NZ rotations)
- FlexiPlace — work from home, office, or hub; 30 days/yr across AU/NZ
- Sonder — free 24/7 physical, medical, and mental health support
Performance & Pay Progression
IAG conducts annual performance reviews linked to the Group Balanced Scorecard and individual objectives. STI eligibility and annual salary reviews occur after the financial year end (July–August).
Promotion Timeline & Hike
Performance Framework
Glassdoor Ratings
Annual Review Timing
IAG's financial year ends June 30. Annual salary reviews and STI payments occur in July–October. Enterprise Agreement staff receive conditions per the EA schedule. No executive pay increases were applied in FY23.
Key Nuances & Insights
IAG's enforceable undertaking with the Fair Work Ombudsman covered ~5,500 workers underpaid over multiple years due to Enterprise Agreement interpretation errors. This is one of the largest underpayment remediation programs in Australian insurance. It highlights the complexity of EA compliance — even sophisticated employers get it wrong.
IAG contributes 13% employer superannuation vs the 11.5% mandatory minimum (FY2025), rising to 12% from July 2025. This was more distinctive when the SG rate was 9.5–11%, but as the mandatory rate reaches 12%, the 1% premium is less impactful. Still, over a career, the compounding benefit is meaningful — roughly A$50K+ extra in super over 20 years on a A$100K salary.
Up to 50% off NRMA, CGU, SGIO, and SGIC products (motor, home, CTP, travel) is extraordinarily valuable in Australia's expensive insurance market. For a family with comprehensive car + home insurance, this easily saves A$2,000–A$4,000 per year — a tax-free benefit rarely matched outside the insurance industry.
Most ASX 100 companies offer standard 4 weeks annual leave. IAG's additional 5 days of 'myLeave' — for any reason including moving house, pet care, or personal wellbeing — is unusual and valued. Combined with 20 weeks gender-neutral parental leave from Day 1, IAG's leave package is among the best in Australian financial services.
As a general insurer regulated by APRA, IAG must defer at least 40% of senior executive variable pay for 4+ years, with malus and clawback provisions. This means executive comp is significantly more conservative than non-APRA companies. The CEO's 42% LTI weighting reflects this — but it also means executives wait years to realise their full pay.
Auckland and Wellington roles typically pay 10–15% less than equivalent Sydney positions even before currency conversion (NZD is ~10% weaker than AUD). However, IAG's FlexiPlace policy allows 30 days per year working across AU/NZ, and NZ employees rate the culture higher (4.0 vs 3.7 on Glassdoor).
Hawkins' A$5.9M total comp is below Suncorp's Steve Johnston (~A$6.8M) despite IAG being significantly larger. IAG's fixed remuneration hasn't changed meaningfully since FY2020 — the jump in FY2024 total comp was driven entirely by STI/LTI outcomes. This suggests the board has been conservative on base pay.
While most ASX 100 companies increased executive pay in FY2023, IAG froze all executive fixed remuneration. This was unusual restraint given strong profits and sent a positive signal on pay-for-performance alignment. The FY2024 jump then reflected catch-up + record performance.