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Bank executive's pay not excessive - Chronican

Bank executive’s pay not excessive - Chronican

(10 April 2012 – Australia) The head of ANZ, Phil Chronican said he is sick of hearing people slam the pay of bank executives – comparing what they earn with the millions athletes and movie stars receive. Chronican pocketed A$2.2 million last financial year, and said that to most people any level of executive pay looked 'stratospheric'.

'We seem happy and even proud when our sportspeople make it onto the list of the top 20 paid people, or similarly when our entertainers make it on Hollywood's best paid list,' told the American Chamber of Commerce in Australia last week.

'Yet for some reason when people are managing large complex businesses it (remuneration) is seen as excessive.'

Chronican said the issue was not whether an executive was paid A$1 million, A$3 million, A$5 million or more, but why.

The risks that they managed, the returns they earned for shareholders, the service to their customers, and the treatment of their employees should all come into consideration he said.

'Just like sportspeople and entertainers, senior executives careers do come to abrupt ends,' Chronican said.

He said criticising the pay packets of bank executives was just one area of recent 'bank bashing' and there were myths about the sector that needed busting.

Another banking myth was that the higher cost of funding for banks was caused by offshore funding markets.

The biggest source of banks' funding were customer deposits, for which the banks are having to pay more, Chronican said.
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