National Australia Bank (NAB) paid its senior executives over the 2009 financial year on average 22 per cent less in short-term incentives than in 2008 to reflect the impact of the global financial crisis, according to the group's annual report.
"The group's results for the 2009 financial year reflected the impact and far reaching nature of the global economic downturn, and are an important factor in determining performance payments for 2009," the report said.
Although revenue growth was maintained and costs carefully managed, the group's earnings were offset by increased bad and doubtful debts and higher funding costs, the report said.
Group chief executive Cameron Clyne, who was appointed to his position on 1 January 2009, received over the 2009 financial year a total remuneration of $5.2 million. This compared with $2.95 million the year before when he was still chief executive of Bank of New Zealand.
Finance director Mark Joiner received a total remuneration of $5.1 million in 2009, compared to $4.1 million the year before. Deputy chief executive Michael Ullmer received a total remuneration of $4.1 million compared to $3.8 million over 2008.
However, NAB said statutory reporting of remuneration can inflate the value of compensation received by executives as it include estimates of remuneration that are not always received.
According to figures of remuneration actually earned for 2009, the directors of NAB estimate that Clyne earned $4.0 million, Joiner $2.4 million and Ullmer $2.6 million.
