Commonwealth Bank of Australia (CBA) spent $55 million on executive remuneration in the financial year ending 30 June 2009, up 55 per cent on the preceding year when total executive remuneration came in at $35.4 million.
The bank released the figures yesterday in its 2009 annual report. CBA is the first of the big four banks to publish its annual report.
CBA chief executive Ralph Norris was awarded a total of $9.2 million, including base salary, short- and long-term benefits and superannuation. In 2008, his total remuneration was $8.7 million.
The total remuneration of the bank's top executives excluding Norris amounted to $45.8 million, compared to $26.7 million last year. The difference is mainly the result of long-term performance benefits awarded to three executives totalling $17 million.
The executives in question are part of the management team of the bank's UK-headquartered asset management arm, First State Investments.
Executive remuneration will be closely watched after the global financial crisis reignited the debate over appropriate levels of compensation.
The federal government has asked the Productivity Commission to conduct a public inquiry into the regulatory framework around remuneration of directors and executives of companies regulated under the Corporations Act.
The commission is due to release a draft report on its findings later this month.
CBA changed its remuneration structure as of 1 July this year, reducing director fees and the chief executive's fixed remuneration by 10 per cent.
The figures that will be reported in the 2010 annual report are also likely to be much lower than this year, because the bank has decided to disclose remuneration according to the performance of its executives at the time of reporting rather than stating the maximum amounts they could earn.
