Norris pay packet halves in past year
(17 August 2011 – Australia) Commonwealth Bank (CBA) chief executive Ralph Norris took a considerable loss in pay in the year to June 30 – earning A$8.6 million including incentives compared with A$16.1 million the year before.
It is reported that the controversial lift in rates last November resulted in a near-halving of Mr Norris's pay packet last financial year. The once highest-paid Australian bank boss is now back in the middle of the pack.
Much of the cut was due to a program that tied long-term incentives for CBA executives to improvements in customer satisfaction.
After steadily climbing up the ranks of bank customer satisfaction under Mr Norris, CBA was closing in on the top-ranked ANZ.
But last year it slumped from second spot to fourth among the majors due to the backlash triggered by its lifting mortgage rates by nearly double the Reserve Bank's rise in official cash rates last Melbourne Cup day.
Mr Norris said last week he stood by that decision, arguing that it was aimed at protecting the bank in the face of rising funding costs. Before Mr Norris joined, CBA had consistently returned the lowest customer satisfaction ratings of the big four banks.
Much of the cut was due to a program that tied long-term incentives for CBA executives to improvements in customer satisfaction.
After steadily climbing up the ranks of bank customer satisfaction under Mr Norris, CBA was closing in on the top-ranked ANZ.
But last year it slumped from second spot to fourth among the majors due to the backlash triggered by its lifting mortgage rates by nearly double the Reserve Bank's rise in official cash rates last Melbourne Cup day.
Mr Norris said last week he stood by that decision, arguing that it was aimed at protecting the bank in the face of rising funding costs. Before Mr Norris joined, CBA had consistently returned the lowest customer satisfaction ratings of the big four banks.
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