Investors and analysts have opened fire on the remuneration structure of Paperlinx.

Credit Suisse's industrial analyst Rohan Gallagher reported to clients that “despite significant share price under-performance, we are amazed at the consistently high remuneration packages received by the chairman and CEO.”

Gallagher explained, “While shareholder value has been significantly diminished over the past five years, chairman and CEO remuneration has totaled some $1.95 million and $14.3m respectively.”

The financial analyst's report has gained the support of Paperlinx's largest investor, Orbis Investment Management. According to Orbis Australia head Simon Marais, “I think management have done very well out of Paperlinx... Their pay is completely out of whack with performance.”

Gallagher argued earlier that the company's remuneration package was not aligned with the company's performance, market capitalization, or shareholders' interests. The staunch analyst highlighted the $926,000 short-term bonus paid to the chief executive in the same year the company reported a $225 million full-year loss.

Moreover, Gallagher pointed at the drop from $4.70 to about 50 cents in Paperlinx share prices since Tom Park's appointment as chief executive in 2003.

Paperlinx's annual report reveals Park was given a raise of $500,000 in 2009; thereby, bringing his pay to $2.7 million. The fees of long-time chairman David Meiklejohn also increased to $407,000. The increases were given even with a purported freeze on executive salaries.