Commonwealth Bank of Australia has raised chief executive Ralph Norris's pay package by 6 per cent to $9.21 million in 2008-09, as his long-term share-based payments were increased.
Mr Norris' fixed cash salary rose 4 per cent to $3.25 million, from $3.12 million in the previous financial year, the Sydney-based bank said in its annual report, released today.
His long-term performance rights, which don't vest for several years, were increased by 51 per cent to $1.94 million.
But Australia's biggest lender cut Mr Norris's short-term bonuses, with the cash portion declining 9 per cent to $1.73 million and the shares portion also falling 9 per cent to $866,667.
Mr Norris's pay package in 2008 wasn't the largest among the chief executives of the big four banks.
ANZ's Mike Smith pulled in $12.96 million, but that included a $5.1 million sign-on fee paid in his first year at the bank, while Westpac's Gail Kelly earned $8.54 million for her first seven months. NAB's former chief executive John Stewart, who retired on December 31, was paid $8.51 million last year.
Mr Norris, his executive team and the directors of the bank will have their salary and fees cut this financial year, in a move CBA announced in April.
Bank employees earning more than $100,000 will have their salaries frozen, while employees earning less will get a 1.5 per cent pay rise.
CBA's chairman John Schubert reiterated in the report that overall credit growth in Australia was expected to slow in 2010 and economic conditions would remain challenging for the bank and its customers.
"Accordingly the group will retain its conservative business settings maintaining appropriate levels of capital, liquidity and provisioning," Mr Schubert said.
"The group will also continue with its cautious approach to the management of credit and market risk."
Still, Dr Schubert, who will step down as chairman in February next year, also said that the Australian economy had been more resilient than expected and it was pleasing to see the beginnings of a recovery.
CBA reported last month that net profit for 2008-09 fell 1 per cent to $4.723 billion, leading it to cut its annual dividend payout.
CBA increased Dr Schubert's annual remuneration by 6.6 per cent to $790,491.
Non-executive director David Turner will replace Dr Schubert as chairman next year.
AAP