Macquarie CEO Retires: Public Pays for Private Deals

Shemara Wikramanayake has retired from Macquarie Group, amassing shares worth hundreds of millions after nearly four decades with the Sydney-based institution. Under her leadership, the company significantly increased revenue and profit, transitioning from infrastructure privatization to a global merchant bank. This success has greatly benefited Macquarie's shareholders, who have seen their investments triple.

However, the public in Australia and internationally has experienced the downsides of Macquarie's privatized infrastructure deals. Examples include Thames Water in the UK, which was burdened with debt and extracted billions before its sale, leading to ongoing government struggles. Sydney Airport's privatization resulted in increased fees, and Macquarie's pioneering role in private toll roads has left cities with costly transport systems.

Other privatized entities like CSL and Qantas have also followed a pattern of public largesse alongside private profit. This era of "financial engineering" over "real engineering" is now viewed with suspicion by policymakers. While Wikramanayake's achievements are noted, the ongoing costs of tolls and airport charges serve as a reminder of the "millionaires' factory's" origins.