Westpac chief executive Brian Hartzer has seen his pay drop nearly 10 per cent after a year in which profits were flat and the bank was hauled across the coals at the royal commission.
All but one Westpac group executive had their short-term cash bonuses cut, as top-tier staff saw an average 25 per cent drop in rewards according to the 2018 remuneration report released on Wednesday.
Mr Hartzer’s cash bonus was down about $450,000, or 30 per cent, to $1.04 million this year.
Mr Hartzer’s total realised remuneration dropped 9.4 per cent, or $512,325, from $5.46 million to $4.94 million.
It follows a 23 per cent pay cut for ANZ chief executive Shayne Elliott earlier this week, who earned nearly $1 million less during a year marred by revelations of misconduct across the Australian financial sector.
‘The board recognises that Westpac needs to continue to improve the way it prevents, detects and addresses misconduct,’ the bank said in its report.
‘The board also recognises that the value of your shares has declined over the year.’
Westpac shares fell 12.5 per cent over the year to September 30.
Across the focus areas used to calculate remuneration, Westpac chief executives only met targets for balance sheet management, and people and culture.
Executives fall short on economic performance, risk management, customer service transformation, and customer outcomes.
Long term variable bonuses were not awarded for the third consecutive year.
Meanwhile, Westpac NZ’s stronger performance than its trans-Tasman counterpart saw the cash bonus of chief executive David McLean increase 20 per cent, or $86,000, to $498,439.
Acting Westpac chief financial officer David Lees, who only commenced his role in June, received a $90,500 bonus and no cut.
Chairman Lindsay Maxstead earned $830,181 in salary and superannuation for the year.