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Westpac NZ CEO George Frazis sees annual pay drop to NZ$4.6 mln from NZ$5.73 mln

Westpac NZ CEO George Frazis sees annual pay drop to NZ$4.6 mln from NZ$5.73 mln

Westpac New Zealand CEO George Frazis, one of the country's highest paid executives, has seen his annual pay fall by about A$880,000 in the bank's just completed 2011 financial year, but it's still higher than his counterpart at the bigger ANZ New Zealand, David Hisco.

The total pay awarded to Frazis for the year to September 30 was down by about A$880,000 (NZ$1.1 million at today's exchange rate) to A$3.5 million (NZ$4.6 million) from A$4.38 million (NZ$5.73 million) the previous year. However, the total pay he received this year was A$4.13 million ($5.4 million), according to the annual report of Westpac NZ's parent, Australia's Westpac Banking Corporation.

The pay received comprised A$1 million of fixed remuneration - cash salary, "salary sacrifice items" such as motor vehicles and parking and superannuation - and A$3.13 million worth of short-term incentives, which includes cash and deferred shares and A$1.93 million received during 2011 but earned in previous years.

Frazis was awarded A$2 million worth of short-term incentives during the 2011 year and A$550,000 worth of long-term incentives. Of this, he's yet to receive A$800,000 of short-term incentives, and A$550,000 of long-term incentives. Of the short-term incentive, 40% will be received as Westpac shares over three years. The long-term incentive consists of performance share rights, which vest over a three year period if performance hurdles are achieved.

Westpac NZ has had a strong year with cash earnings for the year to September 30 up NZ$132 million, or 41%, to NZ$454 million from NZ$322 million the previous year.

ANZ's David Hisco gets NZ$4.4 mln, BNZ's Andrew Thorburn NZ$3.4 mln & ASB's Barbara Chapman NZ$2.8 mln

Hisco, who replaced Jenny Fagg as CEO of ANZ NZ, which comprises both the ANZ and National banks, on October 13 last year, was paid A$3.4 million (NZ$4.4 million) for the year to September 30. However, of this A$1.2 million is incentive pay - through A$710,400 of short-term incentives and A$480,000 of long-term incentives - that he's yet to receive. ANZ recently posted record annual net profit after tax of NZ$1.085 billion, which was up NZ$218 million, or 25% year-on-year.

Fagg, who stepped down on September 1 last year, got A$2.13 million for the year to September 30, 2010.

Meanwhile, Andrew Thorburn, BNZ's CEO and parent National Australia Bank's group executive for New Zealand, Asia and the United States, saw his 2011 pay drop to A$2.6 million (NZ$3.4 million) from A$2.9 million (NZ$3.8 million). BNZ's annual cash earnings rose NZ$88 million, or 17%, to NZ$612 million.

ASB CEO Barbara Chapman, who returned to take ASB's helm on April 26 from her previous role as head of human resources at its parent Commonwealth Bank of Australia, received A$2.2 million (NZ$2.8 million) for the year to June 30, down from A$4 million (NZ$5.2 million) the previous year as share rights at risk came in A$166,344 under water versus A$1.3 million in the black in 2010.

Frazis, enticed across to Westpac from National Australia Bank in March 2009, was this year the second highest paid Westpac executive after group CEO Gail Kelly who received A$8.6 million. Rob Whitfield, the group executive for Westpac Institutional Bank was third with A$3.8 million followed by  group chief financial officer Philip Coffey with A$3.5 million. Brad Cooper, a predecessor of Frazis' as Westpac NZ CEO and now CEO at Westpac's fund manager BT Financial Group, received A$3.4 million.

In May Frazis told that his pay can be hard to explain, especially compared with the salary made by his house painting, immigrant father. That said, it was decided by the bank's board and performance driven, Frazis added. Frazis' A$4.38 million pay last year included A$1.3 million of short-term benefits that weren't actually received during the 2010 year.

(Updates add details about David Hisco, Andrew Thorburn & Barbara Chapman's pay).

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4 Comments can they expect him to make ends meet on just $4.6 million....I can see the donations tins on the counters in every branch..."Your bank manager is destitute..give generously".


dont stand for it  George , how dare they drop your wages like that !  dont they know how tough it is out there. You should report it to the union



From a post on Zerohedge:

A banker, a GM worker and an unemployed person are sitting around a plate of 12 biscuits. The banker stands up, pockets 11 biscuits and on the way out to his chauffered Mercedes limo says:

"Yo, Mr. Goodnut, look out or that welfare scrounger will steal your biscuit"


I wonder how long it will take before we see a few bankers hanging from lamposts < 2 years?