Big bank's top execs take pay cut

by 19 Nov 2013

Seven of NAB’s top ten executives have had their bonuses slashed to placate disgruntled shareholders.

Those to be hit with the pay cut include chief executive Cameron Clyne, whose statutory pay was cut by $1m, bringing his pay packet down to $7.7m.

The cuts come after the bank narrowly avoided a first “strike” over remuneration at its AGM last December, when 21 per cent of shareholders voted against the remuneration report.

NAB saw a 9% rise in profits in 2013, but weak results from 2012 had contributed to lower bonus payments this year, a spokesperson told the Sydney Morning Herald.

Finance director Mark Joiner’s bonus was cut down to $480,000, a reduction of $60,000.

Others to have their bonuses cut were Joseph Healy, the head of institutional banking; Rick Sawers, the head of wholesale banking; Gavin Slater, now head of retail; Andrew Thorburn, the Bank of New Zealand's CEO; and Bruce Munro, the head of risk.

NAB’s CEO maintains a positive outlook for the year ahead, however, pointing towards a competitive advantage through changes to technology systems and new cost-cutting programs.

‘‘We have started to see signs of improvement in our operating environment this year, and the changes we have made put us in a better position than our competitors to take advantage of those opportunities,’’ he wrote.

‘‘I am looking forward to continuing to see the benefits for our customers, shareholders and employees.’’

Meanwhile, ANZ top executives all received a boost to their short-term bonuses last year, with CEO Mike Smith earning $10.1m – up 4% from the year before.

Westpac's Gail Kelly was paid $9.2 million in cash and shares in the year to September 30, down slightly on the previous year, and CBA's Ian Narev collected $7.8 million, about $2.1 million more than he was paid in the previous year.