Finance Finance News CBA boss’s pay rises to $8.1m

CBA boss’s pay rises to $8.1m

Twitter Facebook Reddit Pinterest Email

Commonwealth Bank boss Ian Narev’s pay packet has grown to $8.1 million despite a cut to his bonus because of the company’s financial planning scandal.

Mr Narev’s 19 per cent pay rise from the previous year’s $6.8 million comes amid revelations of misconduct by some of its financial advisors that caused millions of dollars in losses for some clients.

The bank has already paid around $52 million in compensation and is reviewing a decade of activities within its financial planning businesses, from 2003 to 2012.

Mr Narev took home $4.06 million in cash salary and bonuses in the 2013/14 financial year, plus $4.05 million in cash and shares from bonuses earned in previous years.

His 2013/14 short term bonuses were cut by $515,000 because of the financial planning scandal, CBA’s annual report shows.

Other executives also had their bonuses reduced.

CBA’s 12-member executive group was paid $43.8 million in total in the year, level with the previous year.

The bank said its remuneration policy reflected CBA’s strong financial performance, which lifted it to a record cash profit of $8.7 million.

It said it had also achieved its highest ever levels of customer satisfaction, record dividends to shareholders and a historically high share price.

Mr Narev’s pay rise confirms his place among the highest paid CEOs in the country, with the heads of rival banks and the mining giants.

But he is outranked by Suncorp chief executive Patrick Snowball, whose pay rose to $9.1 million in 2013/14.

The latest pay details of most leading CEOs will be released in the coming months.