BNZ boss Andrew Thorburn saw his performance-based pay drop by 25% in the latest financial year

BNZ boss Andrew Thorburn saw his performance-based pay drop by 25% in the latest financial year

A 25% drop in performance-related pay in the latest financial year was a significant contributor to a reduction in the overall package received by BNZ boss Andrew Thorburn.

Thorburn, whose official title is group executive NZ and United States for BNZ's parent National Australia Bank, earned the equivalent on today's exchange rates of NZ$2,916,109 - including non-cash and long-term benefits.

NAB reported last month that BNZ's annual cash earnings after tax rose $47 million, or 6%, to $788 million from NZ$741 million the previous year. NAB said the increase was driven by improved revenue and supported by good lending and deposit growth. NAB itself recorded a A$503 million, or 9%, rise in annual cash earnings to A$5.94 billion. 

In NAB's annual report Thorburn's total package for the year is recorded as A$2,592,841, down from A$2,901,377. Among the other big banks to report results recently, ANZ's NZ boss David Hisco saw his total salary package rise to A$3,711,310, while Westpac NZ chief Peter Clare had a drop in his all-up package in the current year to A$2,796,201.

The NAB annual report shows that Thorburn received a fixed salary of A$1,015,022 in the latest year, compared with A$996,530 - the difference likely being exchange rate fluctuations.

In terms of short-term cash incentive payments, these dropped by over 25% to A$368,460 from A$497,250. The remainder of the salary was made up of non-cash benefits and long term share-based rewards.

Thorburn was not alone among NAB executives in taking a trim in pay. His boss, NAB chief executive Cameron Clyne, saw his total package drop to A$7,762,066 from A$8,779,731 - though his fixed cash salary rose to A$2,632,889 from A$2,367,146.

ANZ's chief executive Mike Smith had a total package of A$10,445,681, while Westpac's Gail Kelly took a cut to A$9,178,330.

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