Bank Chief’s Eye-Watering Salary

CBA chief Ian Narev is paid twice as much in a week as most Australians get in a year

Bank chief’s eye-watering salary

Ian Narev, managing director and chief executive officer of the Commonwealth Bank Group.

Ian Narev, managing director and chief executive officer of the Commonwealth Bank Group. Lucky Mr 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.

CBA launches $5b raising, posts $9b profit

CBA launches $5b raising, posts $9b profit

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.

Originally published as Bank chief’s eye-watering salary