CBA chief executive Ralph Norris is taking a 10% cut to his base salary and the bank is slicing directors’ fees by the same amount.
Is it time that other banks follow CBA’s lead, with bosses showing that they too can sacrifice their salaries for the sake of their firm?
ANZ and NAB are already rumoured to be considering similar pay cuts as they prepare to report half-year results. ANZ chief executive Mike Smith is one of the most richly rewarded banking top brass, on $3m a year, ahead of Westpac chief Gail Kelly’s $2.7m and NAB head Cameron Clyne’s $2.5m.
But is salary slashing really an effective way to reign in costs? Perhaps so – the Commonwealth exec cuts, and a salary freeze for staff earning more than $100k, could trim 4% off the bank’s total wage bill, saving $123m a year, according to a report in The Australian.
Is CBA cowering as the Aussie public get angry about fat cat pay? Or is it making a sensible business decision? Let us know below.