Westpac trims Kelly's pay package to $9.18m

Gail Kelly, the chief executive of Australia's second-biggest bank, Westpac, received a pay cut in 2013 but remains among the country's best-paid bosses.

Westpac's annual report shows that Mrs Kelly's total remuneration was $9.18 million for 2013, down from $9.59 million the year before.

The package includes fixed remuneration of $2.96 million, plus a $2.66 million cash bonus not yet paid. Restricted shares and share rights totalled $3.47 million.

However, including performance hurdles that vested during the year, the total pay that Mrs Kelly took home in 2013 was $10.99 million.

By contrast, the CEO of the country's biggest bank Commonwealth Bank, Ian Narev, was paid $7.8 million in 2013.

Rival lenders ANZ and National Australia Bank are yet to release their annual reports detailing executive remuneration. ANZ boss Mike Smith was paid $10.1 million in 2012 and NAB head Cameron Clyne was paid $8.1 million.

Recent research by the Australian Council of Superannuation Investors and proxy advisory company Ownership Matters showed the average fixed salary for an ASX 100 executive fell 2.6 per cent to $1.9 million in the 2012 financial year. Including bonuses, Australia's top bosses took home an average of $4.7 million, a touch lower than $4.72 million in 2011.

Westpac's annual report follows the bank announcing a record profit of $7.1 billion for the latest year, up 8 per cent, and a 17 per cent jump in dividends. Its full-year result was underpinned by its flagship Australian Financial Services division, where profits jumped 12 per cent to $4.48 billion.

In a letter to shareholders on Wednesday, chairman Lindsay Maxsted said Westpac remained positive about the outlook for Australia "as the economy continues to emerge from a prolonged period of low business and consumer confidence".

"We expect the transformation of our industry to continue as demographic shifts, heightened use of digital communications and the rise of Asia continue to reshape the operating environment."

Pay day

$9.2m Gail Kelly, Westpac

$7.8m Ian Narev, CBA

$10.1m Mike Smith, ANZ*

$8.1m Cameron Clyne, NAB*

*2012