Bank’s chief executive gets pay rise
AUCKLAND: Criticism of the banking sector by regulators has not stopped Westpac from giving its New Zealand chief executive David McLean a pay bump.
Figures from Westpac’s annual report, released yesterday alongside its fullyear financial result, show Mr McLean’s total remuneration rose $A14,548 to $A2.285 million ($NZ2.455 million) in the year to September 30.
That was in contrast to Brian Hartzer, chief executive of parent Westpac Banking Corporate, whose total remuneration took a big hit, falling from $A6.572 million to $A5.052 million.
Banks on both side of the Tasman have been under immense pressure in the wake of Australia’s Royal Commission into misconduct in banking and financial services.
Last November, the New Zealand Government said the banks were ‘‘on notice’’ after a report by regulators the Reserve Bank and the Financial Markets Authority found ‘‘significant weaknesses’’ in the way New Zealand banks govern and manage conduct risks, and changes needed to be made.
Banks had until March this year to come up with individual plans to address specific issues raised by the regulator.
But those responses did not impress the regulators and a further warning was issued to directors and senior management, that accountability goes to the top and that big questions remain about culture at a governance level.
But that has not stopped Mr McLean from getting a pay rise. hIS fixed remuneration rose from $A849,488 to $A861,551, which also helped boost his superannuation benefit from $A81,444 to $A87,710.
His shortterm cash incentive fell from $A498,439 to $A426,975 and his nonmonetary benefits were also down from $A55,885 to $A1194.
But that was offset by a rise in shares rights which were boosted from $A785,206 to $A907,580.
The Westpac boss’ pay was slightly lower than ASB bank chief executive Vittoria Shortt, whose pay packet was revealed in August.
Ms Shortt received $A2.31 million in total remuneration in her first full year as ASB bank chief executive.
Remuneration for the BNZ chief executive Angela Mentis and former ANZ New Zealand chief executive David Hisco will be revealed in the next few weeks. — The New Zealand Herald