Fresh furore over bank exec pays
(17 September 2010 – Australia) The Commonwealth Bank of Australia’s chief executive officer Ralph Norris has re-ignited the senior executive excessive salary debate after receiving a 75 percent salary package increase to more than A$16 million.
The salary increase launches Mr Norris well above his big four peers based on previous year’s earnings, with ANZ’s Mike Smith raking in A$10.9 million, Westpac's Gail Kelly earning A$10.6 million and NAB's top boss Cameron Clyne receiving considerably less at A$5.1 million.
Including Mr Norris, the Commonwealth Bank’s senior executive team jointly received A$64.46 million.
Australian Shareholders' Association spokesman Dan Steiner told The Herald Sun newspaper that his group, which largely represents small retail shareholders, was concerned about the largesse shown to CBA's executives and may not support it at the bank's annual meeting on October 26.
The ASA, which supported the bank's remuneration report in 2009 when Mr Norris took a voluntary 10 percent pay cut, said it would be reviewing its position this year.
According to the CBA annual report released yesterday covering the year to June, Mr Norris was paid A$9.13 million in cash with the remaining A$7.02 million derived from a wide range of short-term and long-term incentive (LTI) schemes based on customer service satisfaction ratings.
The LTIs, accounting for a vast percentage of Mr Norris' total remuneration, include awards for 2008, '09 and '10.
A CBA spokesman said the headline figure included remuneration the CEO may or may not receive during the period from now until 2013.
The pay rise came in a year when the CBA reported a 20 per cent rise in net profit to A$5.66 billion and paid shareholders A$2.90 a share in dividends.
Including Mr Norris, the Commonwealth Bank’s senior executive team jointly received A$64.46 million.
Australian Shareholders' Association spokesman Dan Steiner told The Herald Sun newspaper that his group, which largely represents small retail shareholders, was concerned about the largesse shown to CBA's executives and may not support it at the bank's annual meeting on October 26.
The ASA, which supported the bank's remuneration report in 2009 when Mr Norris took a voluntary 10 percent pay cut, said it would be reviewing its position this year.
According to the CBA annual report released yesterday covering the year to June, Mr Norris was paid A$9.13 million in cash with the remaining A$7.02 million derived from a wide range of short-term and long-term incentive (LTI) schemes based on customer service satisfaction ratings.
The LTIs, accounting for a vast percentage of Mr Norris' total remuneration, include awards for 2008, '09 and '10.
A CBA spokesman said the headline figure included remuneration the CEO may or may not receive during the period from now until 2013.
The pay rise came in a year when the CBA reported a 20 per cent rise in net profit to A$5.66 billion and paid shareholders A$2.90 a share in dividends.
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