Big Four bank chiefs face $14m royal commission fallout

AUSTRALIA’S Big Four bank chiefs could lose a combined $14 million in annual bonuses after the fallout from the banking royal commission.

AUSTRALIA’S Big Four bank chiefs could lose $14 million over the financial services royal commission scandals following calls for their bonuses to be scrapped this year.

Last year, the heads of the Commonwealth, Westpac, ANZ and National Australia banks were paid millions above their already large base pay rates in a series of bonuses that many now say have to end after the revelations from the royal commission. Added together, the Big Four bank chiefs were paid $13.7 million in additional perks.

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The Commonwealth Bank is the only lender to report its full-year results and new chief Matt Comyn forfeited a series of bonuses. Picture: James Croucher

In the past two weeks the big banks — except NAB — all increased their variable mortgage interest rates, blaming the cost of funding. But after repeated scandals, consumer advocates and remuneration, experts say the CEOs should only get their base pay and not the huge short-term and long-term bonuses they have become used to. The issue is expected to come to a head soon as the nation’s business leaders head into the annual meeting season — when shareholders vote on pay packages.

Superannuation law expert and Berrill and Watson principal John Berrill — who has appeared in cases that prompted the royal commission — questioned why any bank bosses should receive a bonus this year.

NAB chief Andrew Thorburn earned $6.63 million last year.

“With all the scandals, breaches of the law and grovelling apologies, surely no CEO worthy of the name could put their hand out for a bonus,” Mr Berrill told the Sunday Herald Sun.

Consumer Action Law Centre senior policy officer Susan Quinn called on banks to think about their remuneration practices.

“We’ve had banks squabble with us over a few hundred dollars while execs are getting millions in bonuses,” Ms Quinn said.

“Bonus time is a good opportunity for banks to reflect on how well they’ve done their jobs. And that means whether they’ve met the expectations of their customers and the community.

ANZ chief Shayne Elliott made $5.6 million last year. Picture: Hollie Adams

“Bonuses should be calculated on what banks are actually contributing to Australia, rather than pure profits.”

The Commonwealth Bank is the only lender to report its full-year results and new chief Matt Comyn forfeited a series of bonuses. But others say all the bankers should do this as they report in coming months.

“If this isn’t the year to withhold bonuses, when is it,” a key pay expert told the Sunday Herald Sun.

Last year ANZ chief Shayne Elliott made $5.6 million with $1.9 million of that base pay.

Westpac chief executive Brian Hartzer pocketed $6.68 million last year Picture: AAP

NAB’s Andrew Thorburn earned $6.63 million, with $2.2 million base pay. Westpac’s Brian Hartzer pocketed $6.68 million, with $2.6 million of that base pay.

These banks will reveal remuneration for bank chiefs closer to their annual meetings in November.

Mr Comyn is an outlier, as it is the only bank to report in August.

He received $2.9 million for this year, in which $1.3 million is base pay plus he received about $1.162 million in long-term incentives.

He forfeited about $2.5 million in long term incentives.

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