Commonwealth Bank of Australia CEO received $7.2m last year

A Billion Dollars

The lender reported record profit last year but their CEO 'remains lowest paid among the nation's four biggest banks'.

Bloomberg reports that Commonwealth Bank of Australia paid Chief Executive Officer Ian Narev’s $7.2m in its last business year, during which the lender reported record profit.

The bank reported in its annual report today that it had boosted Narev’s salary in the year ending June from over $5.2m in the previous year, when he was CEO for seven months. He’s still the lowest paid among the heads of the nation’s four biggest banks.

Australian lenders are beating a slowdown in credit demand and posting record profits by cutting costs and jobs. CBA’s cash profit in the business year that just ended climbed 10% to a record $7.2bn as it boosted earnings from wealth management and bad-debt costs shrank in the second half of the year. The bank’s shares touched an all-time high on August 14th.

'There is only a limited amount of leadership talent available and you need to pay to attract that talent,' Peter Swan, a Sydney-based professor at the Australian School of Business, said by phone. 'CBA shareholders are getting a bargain when compared to other banks’ performances and CEO pay.'

Narev was awarded $2.3m in fixed salary and pension and the rest in incentives and equity awards, according to the bank’s annual report.

To access the complete Bloomberg article hit the link below.

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