CBA chief Ian Narev is paid twice as much in a week as most Australians get in a year
COMMONWEALTH Bank chief Ian Narev earned double the average annual Australian wage every week over the past year as the value of his pay and perks package hit $8.3 million.
The bank last week revealed a record full-year profit for an Australian lender of $9.06 billion.
But despite earning big bucks, he is still not the highest-paid banker, getting less than ANZ’s Mike Smith on $10.7 million.
The average Aussie earns about $77,000 a year after annual salaries rose by just 0.4 per cent in the six months to May 2015 to be 2.0 per cent higher than a year ago.
It’s also much more than most financial services workers make — an average of $89,736, according to the latest Australian Bureau of Statistics data.
Mr Narev’s wage’s rose by 4.9 per cent. But his remuneration bonanza comes at a time when the institution’s 800,000 mum and dad shareholders are set to share in the bonanza.
The bank upped its dividend last week to $4.20 per share for the year, meaning it will pay out about $6.8 billion to its 800,000 shareholders.
The bank’s annual report, published today, reveals Mr Narev was rewarded for the year to June with a base wage of $2.6 million and benefits including short-term cash incentives of $1.6 million and deferred short-term incentives of $1.6 million.
The bank was left red-faced last week after a disastrous computer glitch saw it double-charge some accounts on the same day it announced the record profit.
Shares in the nation’s biggest bank start trading again today after going into a halt last week as the lender revealed a $5 billion capital raising — the second biggest in the nation’s history.
Shares are down 1.4 per cent — or just over $1.10.
The cash, which is to bolster its cash buffers to meet regulator demands in case of another financial crisis, will be raised by giving existing shareholders the chance to buy a bigger stake in the bank.