Daily Dispatches: New pay package for Norris

2 October 2009

1 minute read

Daily Dispatches: New pay package for Norris

CBA chief executive Ralph Norris could get as much as $7.86m of shares in the group as part of a revamped, long-term incentive scheme. (Business Day)

The news this week that ANZ Banking Group is buying out the remaining half of its Australian funds management joint venture with Dutch bank ING has not come as a complete surprise. ANZ has long been considered the laggard in the Australian banking sector because it lacked a directly owned wealth management business, and was the logical candidate to take over when ING's woes prompted it to pull back from global ventures. (The Australian)

Although shaken, Australia's resilient financial system - including the much-maligned big four banks - has provided the frontline defence that has kept the global recession at bay. (The Australian)

The failure of South Australia dealer group Financial Planning & Life has cast doubt on the viability of the fixed fee, low-cost dealer group model, according to some of the planners involved in it. (Money Management)

AUTHOReFinancialCareers Australia

Insider Comment

Ma
Manuel
8 October 2009
Westpac is also a partcipant of this type of system. Particularly BT Financial Group, which is Westpac's asset management arm. BT's hiring was controlled by the "Boys Club" where quality of the candidate did not matter. Relationship without the quality and appropriate skill of the candidate will not work.
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Ja
James
8 October 2009
The middle and senior management in the past at CBA and CFS who are close to the executive and heads have complete access to extremely high base salary. This is where false industry relationship comes in the picture. A good example are key account managers at CFS within the past 4 years. This is also happening at NAB.
The salary was defined by past relationship with the manager and without the quality of the candidate. So how do you expect the business to produce a quality performance and risk management. Human resources should lessen the impact of this type of hiring system. We heard that a lot of internal candidates without the appropriate qualification was relocated to the investment bank business of CBA purely out of relationship. If this is true again CBA is following the same pattern dysfunction in the past.
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Ja
James
8 October 2009
This package is extremely exorbitant for a CEO or any executive in the bank. How can CBA increase a salary in 2009 by 6% if they have not managed risk properly. There was a lot of write offs as a result of poor risk management for both NAB and CBA. As an example Colonial First State (CFS) which, is the wealth management arm of CBA closed mortgage fund and other property funds in 2008 as a result of poor risk management. Yet CFS pay extremely above market base salary to portfolio managers, analyst, traders, key account managers sales (wealth management and asset management), head of distribution, etc...this system is wrong.
In the past CBA have an annual increase in salary across the board/roles a part from paying extremely above the market base salaries to head departments and executives.
The annual increase in salary was also applicable to middle and senior management. As an example financial planners at CBA have access to this and it does not matter if they performed well or not. This system is wrong.
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