By Gareth Vaughan
Despite a high likelihood their bank will post record annual profit next month, ASB's senior managers won't be getting a pay rise.
Linley Wood, ASB's executive general manager for culture and community, told interest.co.nz via a bank spokeswoman the bank was currently completing performance reviews following the end of its financial year on June 30.
"Our most senior managers generally will not be receiving a salary increase at this time," Wood said. "For all other ASB people the annual salary review process is unchanged."
Her comments come after The Australian Financial Review (AFR) reported yesterday that ASB's parent, Commonwealth Bank of Australia (CBA), has frozen the pay of its chief executive Ian Narev and other senior managers in a bid to avoid wide-scale job cuts. Tens of thousands of CBA's employees had also been told to expect smaller wage increases than in previous years.
The CBA wage freeze will apply to the bank’s most senior employees. In addition CBA general managers who earn more than A$150,000 won’t get pay rises, with 400 to 500 staff expected to be affected, the AFR reported. Two of CBA's rivals have already announced job cuts this year with the ANZ Banking Group cutting 1,000 jobs and Westpac Banking Corporation about 750.
Freeze doesn't apply to bonuses
However, the newspaper said the pay freeze, which will take effect for the current financial year to June 2013, applies to base salaries, but not bonuses.
Narev, who replaced fellow New Zealander Ralph Norris as CEO last December, is paid a fixed annual salary of A$2.5 million. He's also eligible for short-term incentive payments with an initial annual target of A$2.5 million and may qualify for another A$2.5 million bonus if performance hurdles are met over the next four years. Norris received A$8.6 million in the 2011 financial year.
ASB's CEO Barbara Chapman, who took the reins on April 26 last year after Charles Pink's departure in November 2010, received A$2.2 million (NZ$2.8 million) in the year to June 30, well down from A$4 million the pervious year. Prior to becoming ASB's CEO Chapman was head of human resources at CBA. See more on Chapman's and other NZ bank CEO's pay here.
CBA is expected to report a record annual profit of about A$7.1 billion on August 15, however its earnings are said to be coming under pressure from weak credit growth and rising funding costs. ASB has been performing even better than its parent. It reported record half-year profit of NZ$372 million in February following on from last year's record annual net profit after tax of NZ$568 million.
For the half-year to December 31, ASB's return on equity rose to 21.2% from 17.2% in the year to June 2011, and its net interest margin rose 11 basis points to 2.19%. In contrast the CBA group's return on equity fell to 19.2% from 19.5% and its net interest margin dropped 10 basis points to 2.15%.
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9 Comments
Of course the freeze will not apply to bonuses....the top fat cats applying the freeze on the lesser fatcats will receive a fat bonus for applying the freeze..stands to reason!
What a farce.
And what a joke...they are paid bloated salaries to do a simple job but expect bonuses for doing the job....selling credit...arranging the spin...wearing suits...and ties...and dangly earings.
Good to see you back GBH .. you know you're not allowed to use the F word
A barbecue. A beautiful twilight setting. Guy trying to light up the barbecue. He has a speech impediment. The lighter doesnt work. Swaggers over to 3 beautiful young ladies sitting on a bench by the pool having a smoke and he goes
ha huh huh huh .. how about a ...
FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.
FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.
a look of extreme alarm appears on the faces of the young ladies as he continues
huh huh huh huh .. how about a
FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.
FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.
finally he gets it out
huh huh huh how about a few matches
The young ladies looks of alarm dissolve, he notices it, so he goes
huh huh huh .. you thought I was going to ask fu fu fu fu for a
FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.
FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.FU.
FULL BOX
Cracker ! ....... just imagining a young lady with a full box has got me all excited ......I wonder if she'll let me bury my face in her hot little
Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.T.Ti.Ti.Ti.
Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.Ti.
Tissues
A theme.....here is another Crackeeeeeeeeeeeeeeeeeeerrrrrrrrrr.
A very pretty young speech therapist was getting nowhere with her “Stammerers Action Group”.
She had tried every technique in the book without the slightest success. No-one was improving.
Finally, thoroughly exasperated, she said:
"If any of you can tell me, without stuttering, the name of the town where you were born, I will give you wild and passionate love until your muscles ache and your eyes water. So, who wants to go first?"
The Englishman piped up: "B-b-b-b-b-b-b-irmingham."
"That's no use, Trevor," said the speech therapist. "Who's next?"
The Scotsman raised his hand and stammered out: "P-p-p-p-p-p-p-p-p-aisley".
“That's no better. There'll be no prize for you I'm afraid, Hamish. How about you, Paddy?”
The Irish fella took a deep breath, focused hard and a meaningful word came eventually out of his mouth: "London."
“Brilliant Paddy!” said the delighted therapist, took him upstairs and immediately set about living up to her promise.
After fifteen steamy minutes the couple paused for breath and Paddy blurted out:
"-d-d-d-d-d-d-d-d-erry".
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