Medibank chief set to get 400 percent pay rise when health insurer goes public

Medibank Private managing director George Savvides is set to receive a 400 percent pay rise next year when the health insurer goes public.

If the float fetches around $4 billion as expected, the 58-year-old trained engineer's pay packet should soar from a comparatively humble $1.2 million to between $2 million and $8 million, The Australian Financial Review reports.

"George Savvides can expect to have his pay packet match private sector executives for similar size companies," former Institutional Shareholder Services executive director Ulysses Chioatto said.

"However, the market scrutiny will be intense with both local and global funds asking very hard questions around performance. "

Martin Lawrence, director of government advisory firm Ownership Matters, said Mr Savvides' salary boost should not come as a surprise.

"The track record for privatisations are that they are generally a bonanza for management," he said.

The average Australian salary as of May 2014 is $58,391, according to the Australian Bureau of Statistics.

In March, the federal government announced that Medibank Private would be sold through an initial public offering during the 2014-15 financial year.