CBA boss scores $2m raise

Mr Norris, who has just completed his third year in charge of the bank, and who will in January become the longest-serving chief executive of the "Big Four" banks, received a $1.65 million increase on his base take-home pay, which makes up just over a third of his total remuneration.

Part of the increase - $692,000 - was explained by Mr Norris's decision to significantly reduce his payments into his superannuation fund. In 2007, his super contributions totalled $792,000. A year later that amount had fallen to just $100,000.

However, that still meant that his base pay went up by about $862,000 to $3.12million, putting that amount of his package on a par with his fellow bank chiefs at ANZ, National Australia Bank and Westpac.

Mr Norris's final package of $8.66 million was also boosted by a near-$500,000 increase in his cash bonus to $1.9 million after the Commonwealth again reported record net profits this year of $4.73 billion - although the growth in its earnings slowed to just 5 per cent on an annual basis.

The other major components of his package saw him pick up the equivalent of $950,000 in a short-term reward of Commonwealth shares and $2.5 million made up of a longer-term parcel of equity and performance rights which cannot be exercised for several years.

Up to 70 per cent of Mr Norris's reward scheme is based on the bank's performance annually.

The board also reserves some of his remuneration to "warehouse" additional shares - an amount which is judged by how well the Commonwealth does over a three-year period in terms of its financial results, customer service levels and Mr Norris's ability in developing managerial talent.

Mr Norris's package has been gradually increasing since his appointment in September 2005, a reflection of the Commonwealth's better performance and the fact that he has been falling behind his major counterparts - three of whom have either taken up their jobs over the last year or are just about to.

His 2008 remuneration, disclosed in the bank's annual report released yesterday, puts Mr Norris within $200,000 of the amount received last year by National Australia Bank's John Stewart. The latter's salary for the past 12 month has yet to be disclosed.

However, Mr Stewart's replacement, Cameron Clyne, has signed on for a cash and shares deal worth a minimum of $7.5million when he takes over on January 1.

Mr Clyne's remuneration could rise to $8.75 million in his first year, depending on NAB's performance.

That compares closely with the $8.5 million initial annual deal for the new Westpac chief executive, Gail Kelly.

The boss of ANZ, Mike Smith, negotiated as much as $9 million for 2008 when he started last October.