NAB’s new chief a steal at $1.8m pa

NATIONAL Australia Bank will pay acting chief executive Philip Chronican a far smaller wage than it ladled into the wallet of outgoing head Andrew Thorburn.

As the bank steps up its efforts at damage control following a tumultuous year, it has declared Mr Chronican will receive fixed pay of $150,000 a month — the equivalent of $1.8 million a year — until a permanent chief executive is appointed.

While that is still more than 20 times the average Australian full-time wage, it is significantly smaller than the amount Mr Thorburn was paid. Mr Chronican will not be eligible for bonuses or fees for his role as a non-executive director at the group.

In the bank’s last financial year, covering the 12 months to September, Mr Thorburn received total pay and perks worth $4.3 million, including a fixed salary of $2.28 million.

NAB revealed yesterday that Mr Thorburn, who was ousted earlier this month amid the fallout from the banking royal commission, will receive a $1 million golden parachute. Mr Thorburn wil leave NAB on February 28.

Mr Thorburn had been eligible for about $20 million in other performance rights but these have been forfeited.

NAB said that “in accordance with contractual entitlements”, the outgoing chief executive would receive a payment of $1,041,449 in lieu of 26 weeks notice.

“All Mr Thorburn’s unvested deferred awards will be forfeited in accordance with plan rules,” the bank said.

It also announced outgoing chair Ken Henry will not be part of two committees set up to choose the bank’s next permanent chief executive and chair. Under intense scrutiny following the release of the royal commission’s final report, NAB also announced this month that Dr Henry was stepping down.

But in a widely criticised decision, the bank said he would remain until a permanent chief executive was chosen.