- NAB executives face a 15pc pay cut in response to community anger over misbehaviour
- By Stephen Letts
- Contributed by: Sime ( 14 articles in 2018 )
NAB chief Andrew Thorburn faces a $1 million pay cut, but could still earn $10 million.
NAB has reacted to growing community anger by giving its senior executives a 15 per cent haircut to their handsome remuneration packages.
Chairman Ken Henry said the new remuneration structure for the executive leadership team was more customer and shareholder focussed.
The size of the cuts, if they are to be made at all, will be made known when NAB releases its annual report in November.
"Where NAB falls short of customer, shareholder and community expectations, the new framework provides the board with the ability to hold leaders accountable," Dr Henry said.
For chief executive Andrew Thorburn that means the "at target" remuneration is now $7.94 million, down $1 million — or 11 per cent — on last year.
The "at target" pay is made up of a basic $2.3 million salary, variable incentive of $4.6 million and dividends of $1 million.
The new variable reward replaces the old short-term and long-term incentives which delivered between $5.4 million and $7.2 million last year.
However, if everything goes well for Mr Thorburn, he could still be paid $10.8 million this year with the variable reward having a maximum of $6.9 million.
If Mr Thorburn does receive the maximum payout, it would be only $60,000 less than last year's maximum.
If everything comes totally unglued, Mr Thorburn would still be left with his base pay of $2.3 million.