Pokie trusts are responsible for distributing gambling profits to local community groups. They perform a valuable service, but there are some trusts that could be doing more to benefit local organisations. According to The Press, the Department of Internal Affairs has noted that two poker machine trusts in New Zealand are paying their CEOs ‘excessive’ salaries.
While the exact numbers have not been revealed, it has been suggested that they are earning $120 000 annually. While it is not uncommon for executives in the gambling market to have six-figure salaries, pokie trusts are meant to keep their operating costs to a minimum. This allows for the community to claim as much as possible to benefit local residents.
However, with executives earning hundreds of thousands of dollars, there is plenty of money that could be going back into the community that simply is not being spent in the way it is intended. Since they oversee pokies at a handful of venues and there are not many employees at these trusts, it has been recommended that they reduce the salaries of their senior executives.
At Mainland Foundation, CEO Nick Kouloubrakis is considered to be ‘overpaid’, as well as seven other members of staff. According to reports, the directors and committee members earn more than $117 000 a year, while Mr Kouloubrakis is likely to earn much more. Over the years, Mainland has donated $3.1 million, so its directors’ salaries are certainly eating into a significant portion of potential funding.
The other group is the Air Rescue Trust, where Managing Director Barry Stean earns more than $122 000 per year. The report drafted by Internal Affairs states that his salary is ‘unreasonably high’, and has recommended that it be reduced to at least $81 000.
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