The federal government wants an explanation from government-owned businesses about giant executive salaries and bonuses.

Reports in the Australian Financial Review say at least 24 public servants and government-owned business executives earned more than $1 million last year, including senior staff from Australia Post, NBN Co and Snowy Hydro. 

Finance Minister Katy Gallagher and Communications Minister Michelle Rowland have both written to the organisations calling for an explanation. 

“We appreciate that executive and workforce remuneration is a matter for the board and a complex one, with the need to balance the government's expectations to manage restraint with regard to performance pay with delivering Australia Post's commercial strategy through the attraction and retention of high-calibre staff and leaders,” the ministers said in a letter to Australia Post chair Lucio Di Bartolomeo.

“However, we are seeking information from a number of government business enterprises in relation to the application of performance bonus guidance and would like to better understand the basis for decisions on remuneration, including governance arrangements.”

Management of the businesses has been asked to justify why these salaries are necessary and appropriate.

Assistant Treasurer Andrew Leigh says the payments appear to be out of step with community expectations.

“Certainly, it raises an eyebrow or two in the current environment with Australians seeing real wages now lower than they were a decade ago,” Mr Leigh said.

“It's a concern and that's why the minister has asked for a full explanation.”