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WISE WEDNESDAY: CEO Pay Should Be Tied To Staff Mental Health, Jeff Kennett Says

Mental health as a key performance indicator (KPI)?

It's a future BeyondBlue Chairman Jeff Kennett wants to see for Australian business.

The former Victorian Premier has called for performance bonuses for chief executives to be partially tied to the mental well-being of their staff.

Kennett is making the proposal to the Business Council of Australia (BCA) on Monday.

"I want to make sure that rather than members of the BCA and industry leaders just calling for tax cuts, they also put a priority on the mental health of their staff," he told the ABC on Monday.

"So I would have the board establish a KPI for the CEO, in terms of the conditions of the workforce, and I would have the CEO prepare the KPI for their direct reports.

Kennett said he wants CEOs undergo a mental health check themselves.

"Increasingly I am finding as chairman of BeyondBlue I am getting calls from very senior either board members or CEOs that one of their direct reports has hit a brick wall -- in other words, the pressures on senior managers today seem to be increasing," he said.

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