Tabcorp CEO Salary in 2026: Gillon McLachlan's $1.5m Fixed Pay, Bonus and Equity Explained

Tabcorp Holdings Limited (ASX: TAH) provides a useful Australian case study of CEO remuneration because its FY2026 annual report shows three very different answers to the question “How much did the CEO earn?” Gillon McLachlan had fixed annual remuneration of $1.5 million, received $2.25 million of cash and benefits during the year under the company's non-statutory received-pay measure, and had statutory remuneration of approximately $4.33 million.

All three figures can be correct at once. They measure different things, and understanding those differences is essential when comparing ASX chief executive salaries.

How much is Tabcorp CEO Gillon McLachlan paid?

Tabcorp's FY2026 annual report (year ended 30 June 2026) provides these figures:

Source: Tabcorp FY2026 Annual Report, Remuneration Report, pp. 59–73 (official investor website).

Why does the received-pay table show $745,890 of cash STI, while the FY2026 statutory bonus column shows $799,500? They relate to different timing conventions. The voluntary FY2026 received-pay table reflects cash received during the period, including the payment linked to the prior incentive cycle. The statutory table records the cash portion of the STI earned for FY2026. These figures should not be added together or described as two separate FY2026 bonuses.

What is included in the $4.33 million statutory figure?

The remuneration report breaks down the CEO's FY2026 statutory remuneration as follows:

The share and option amounts are accounting allocations, not evidence that the CEO received an equivalent cash payment or sold those shares in FY2026. Tabcorp reported zero LTI vesting in FY2026.

This distinction matters when comparing CEOs. A company with a large options expense can report higher statutory remuneration even when its executive's realised cash is lower.

How does Tabcorp's CEO bonus work?

Under Tabcorp's annual remuneration arrangements, the CEO's target short-term incentive is 100% of fixed remuneration, with a maximum opportunity of 150% of fixed remuneration. At $1.5 million fixed remuneration, that produces:

For FY2026 the company reported the CEO's STI outcome as 71.1% of maximum. Under the FY2026 executive design, 50% of the CEO's earned STI is paid in cash and the remaining 50% is delivered through restricted shares subject to the applicable terms.

Tabcorp's FY2026 financial results and investor presentations provide additional context on the operating performance against which incentives were assessed. The result was not based on financial performance alone. The board applied a risk-related downward modifier in response to regulatory and compliance matters. This is a particularly useful part of Tabcorp's remuneration framework: strong operating results do not necessarily eliminate the consequences of risk or conduct concerns.

Source: Tabcorp FY2026 remuneration report and investor materials.

How much can the CEO earn through long-term incentives?

The CEO's contracted LTI opportunity is 100% of fixed remuneration at target, rising to 200% at maximum under the relevant terms. Using fixed remuneration of $1.5 million:

These are illustrative annual opportunity totals based on the disclosed contractual percentages, not amounts received in FY2026 or guaranteed future payments. Long-term incentives are contingent on performance conditions, vesting and the value of the relevant awards. An option's eventual value can be zero, and accounting grant-date values are not interchangeable with realised proceeds.

Tabcorp's 2025 AGM materials sought shareholder approval for an FY2026 option grant to the managing director under its long-term performance arrangements. Read the FY2026 option grant explanation for details of the grant conditions and applicable governance.

How does FY2026 compare with FY2025?

McLachlan started employment as CEO-elect in August 2024 and was formally appointed managing director and CEO on 31 January 2025. FY2025 statutory remuneration therefore includes an incomplete employment year, so the increase in statutory total cannot be interpreted as an equivalent annual salary rise.

Is $1.5 million a competitive ASX CEO salary?

That question cannot be answered from Tabcorp's reported total alone. The more relevant comparison is its $1.5 million fixed remuneration against CEOs of listed companies with similar business scale, operating complexity, financial performance, regulatory demands and geographic scope.

For example, comparing Tabcorp directly with Australia's largest banks or global mining groups would introduce substantial differences in role size. An appropriately selected peer group is more defensible than using the 20 highest-paid CEOs.

When benchmarking, calculate fixed remuneration separately from target total remuneration and statutory reported pay. Also record the effective date of each CEO's package, changes of incumbents and unusual one-off share awards.

What can Australian employers learn from Tabcorp?

Tabcorp's disclosures highlight three useful design principles.

Separate guaranteed and at-risk remuneration. Employees and shareholders should be able to see how much remuneration is fixed, how much depends on annual performance and how much is contingent on longer-term outcomes.

Define target and maximum opportunities. A bonus expressed as “up to 150%” can be misleading without showing the target and actual payout levels. A clear plan lets participants understand the calculation before performance is assessed.

Make risk and conduct relevant. Companies should not create incentives that encourage strong short-term results at the expense of compliance or responsible behaviour. Any risk adjustments should be based on defined governance processes and documented decisions.

A smaller organisation does not need Tabcorp's executive option structure to follow these principles. It might adopt an annual cash bonus with financial and non-financial measures, a clear maximum and a well-defined approach to material conduct or compliance failures.

A practical bonus example for a smaller business

Consider a general manager with fixed annual remuneration of $200,000, a target bonus of 25% and a maximum bonus of 40%.

This is a simplified employer-designed example, not Tabcorp's actual incentive formula. Any modifier needs to be established in plan rules and applied consistently within the relevant employment-law constraints.

Checklist for reviewing a CEO remuneration package

• Have we distinguished fixed annual remuneration, bonus opportunity and statutory total?
• Do we know whether each STI number refers to award earned or cash paid during the year?
• Have we separated share-based accounting expenses from actual realised benefits?
• Are the CEO's target and maximum opportunities clearly documented?
• Do the incentive measures support the business strategy without rewarding excessive risk?
• Is the peer group appropriate for the CEO's responsibilities and company complexity?
• Can the remuneration committee explain its recommendation and any adjustments?

The practical takeaway

Tabcorp's $1.5 million CEO fixed remuneration is only one element of a much broader executive package. In FY2026, the CEO earned an STI award of approximately $1.60 million, while the annual report recorded statutory remuneration of $4.33 million and actual remuneration received during the period of about $2.25 million.

The difference is not a contradiction. It reflects incentive timing, deferred equity and accounting treatment. For anyone assessing an ASX CEO salary, understanding those components is more useful than quoting the highest number in the annual report.

Need an independent CEO remuneration benchmark? Contact Remunera for executive salary benchmarking, incentive analysis and board-ready remuneration comparisons.

Data note: All Tabcorp figures relate to the financial year ended 30 June 2026 unless specified. Figures are sourced from the company's FY2026 annual report and AGM materials. Do not use statutory remuneration as a synonym for cash salary.