Narev rewarded for driving CBA to record profits

Commonwealth Bank chief executive Ian Narev was paid a total of $7.8 million in his first full year as boss of the nation's biggest bank, as it notched up the biggest profit ever for an Australian lender.

Commonwealth Bank chief executive Ian Narev was paid a total of $7.8 million in his first full year as boss of the nation's biggest bank, as it notched up the biggest profit ever for an Australian lender.

The package is $2.1 million more than Mr Narev received in the 2011-12 financial year, of which he spent seven months in the top job.

It was one of several big pay rises revealed on Monday, setting the tone for what could happen in the next fortnight.

Aurizon chief executive Lance Hockridge received a 34 per cent rise, bringing his total pay package last financial year to $6.1 million and making him one of the country's highest-paid executives. And the salary package total for the chief executive of BlueScope, Paul O'Malley, was $5.1 million in the year to June, up from $2.8 million a year earlier.

As well, after a three-year freeze on his base pay, the BlueScope board agreed to a 3 per cent rise.

The increase in Mr Narev's pay comes after the bank froze the pay of top executives last year, which meant Mr Narev's base pay and superannuation was unchanged at $2.5 million a year.

Even so, the report shows, short-term bonus payments to Mr Narev increased by more than $1 million to more than $3 million, and long-term incentives rose to $1.8 million.

While Commonwealth Bank is the country's biggest lender, Mr Narev is the lowest-paid of the big four bank chiefs. ANZ's Mike Smith was last year paid $10.1 million, Westpac's Gail Kelly got $9.5 million and NAB's Cameron Clyne was paid $8.1 million.

The rise in pay was revealed as ANZ said it had picked an American banker from Lloyds, Andrew Geczy, to lead its push to become a "super-regional" lender by expanding further into Asia.

Since the departure of Alex Thursby in April, ANZ has been on a global headhunt for an executive to run its international and institutional division, which is driving the bank's Asia strategy.

Analysts said that whoever replaced Mr Thursby could be a potential successor to chief executive Mike Smith, who expects to stay in the job two to three years more.

Mr Geczy, 50, previously ran wholesale banking and markets at Lloyds. Before that, he worked at an investment advisory business he founded in London, and has worked at Citigroup in corporate and institutional lending.

Mr Smith said Mr Geczy would provide a "significant addition" to the bank's management ranks.

Unlike CBA, Westpac and NAB, ANZ has a goal of making 25 to 30 per cent of income from the Asia-Pacific region, Europe and America by 2017.

Related Articles