Childcare CEOs Received Lavish Bonuses Amidst Safety Breaches and Alleged Abuse
Sydney, Australia – Executives at Australia’s largest for-profit childcare providers received significant pay rises and bonuses – totaling up to $500,000 – in the last year, despite a backdrop of concerning safety breaches and, in one case, the employment of a man now facing multiple child sexual offense charges. The revelations, brought to light during a parliamentary inquiry, have ignited public outrage and calls for accountability.
The inquiry focused heavily on G8 education, where CEO Pejman Okhovat secured a $534,426 bonus on top of a base salary increased to $956,468. G8 education ties executive bonuses to performance targets including financial results, enrollment numbers, staff retention and safety and compliance – a metric they claimed to have exceeded in 2024.
However, evidence presented to the inquiry paints a disturbing picture. MLC Abigail Boyd detailed confirmed breaches at G8 centres, including a child being slapped in the face in 2023 and others exposed to mould in 2024. Perhaps most shockingly,an examination revealed a child at a G8 center was found naked in an outdoor playground after staff were unable to locate them during parent pick-up in April 2024.
The inquiry also addressed the case of Joshua Dale Bown, 26, who was charged in July with over 70 offences involving children, some allegedly committed while employed at a G8 Education centre earlier this year. G8 Education has issued repeated apologies for the “pain this has caused.”
When questioned about whether recent events should impact his bonus, Okhovat stated bluntly, “I personally don’t wake up every morning thinking about that – absolutely not.” He maintained his focus is on running the organization and prioritizing safety. boyd challenged this assertion,questioning the alignment of bonus structures tied to commercial objectives with a genuine commitment to child safety.Okhovat defended the incentives, arguing they foster “trust and confidence in the local community.”
G8 Education declined to comment directly on the appropriateness of the bonus payments given the safety breaches, stating only that they are transparently disclosed and reviewed annually.
The inquiry also scrutinized Affinity Education Group, where CEO Tim Hickey admitted to receiving bonuses of up to $300,000 but was unsure if they had been reduced due to safety concerns.Breaches at Affinity centres were found to be 70% higher than the New South Wales average in 2024, a meaningful increase from 30% higher in 2021, following a buyout by Quadrant Private equity. Disturbingly, one breach involved a child being used to clean up their own vomit on two separate occasions. Hickey confirmed his overall pay package has increased over the past three years.
The revelations have prompted calls for boards to consider ”clawing back” bonus payments from executives, given the severity of the safety failures and the public outcry. The inquiry continues to investigate the systemic issues within the for-profit childcare sector and the balance between financial performance and the safety and wellbeing of vulnerable children.
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