Australian PM slams 'absurd' fat cats

Howard is usually big business friendly

Australia's conservative prime minister has told big business to end "absurd" pay deals to executives.

"One thing you've got to do is stop entering into absurdly generous payout arrangements in the first place," Prime Minister John Howard said..

"You want to keep the capitalist system free of too much government regulation, well you've got to deliver," he said.

His comments came after public condemnation of a payout of £4m ($6.6m) plus £600,000 pension to BHP Billiton's former chief executive Brian Gilbertson for just six months work, before being ousted.

Corporate failure

Mr Howard said it would be "impossible" for the government to cap on executive pay.

"Very definitely, it's got to be geared to performance; if fellows don't deliver, (they) don't walk away with a golden handshake."

Mr Gilbertson resigned from BHP in January the companies shares fell more than 10% during his time at the helm.

The company's net profit fell 11.5% during his tenure.

Mr Gilbertson left BHP claiming "irreconcilable differences" with the board.