Top executives at the big four banks have their salaries slashed by nearly $300,000… but they're still making an average of $1.2million a year
- The salaries of the top 254 executives at the big four banks have been slashed
- Some received a pay cut of $500,000 following the banking royal commission
- Experts attribute the cuts to the banks' board being less willing to offer bonuses
Top executives at each of Australia's big four banks had their yearly salaries cut by up to $500,000 before the banking royal commission handed down its findings.
Following the big pay cuts, the country's top banking executives still take home an average of $1.2 million each year, the lowest in six years.
The average pay, including bonuses, of the top 254 bankers across ANZ, Westpac, Commonwealth and NAB have dropped by an average of around $300,000, according to The Australian.
The cuts are believed to have been made as the federal Government's royal commission into the banking industry heard evidence of widespread negligence by the banks, some of which was labelled 'criminal' in the damning finding released in February.
The salaries of banks' top executives have been cut following the banking royal commission. Pictured: Commissioner Kenneth Haynes (left) and Treasurer Josh Frydenberg (right)
ANZ's executives suffered the biggest cuts, with their average salaries dropping $500,000 to $1.5million.
Top Bankers at Westpac saw their salaries fall $280,000 to $1.8million, while the National Australia Bank's top jobs' pays dropped $184,000 to $1.4million
Salaries at the Commonwealth Bank's fell $230,000 to $800,000, the only bank in the so-called 'Top Four' of Australian banks to fall below $1million.
Executives at ANZ (left) saw their salaries fall $500,000, while top bankers at Westpac (right) had their paychecks slashed by $280,000
The top executives at the Commonwealth Bank saw their salary fall $230,000 to $800,000
The 254 executives are paid the substantial salaries because they are considered the bank's 'material risk takers'.
The number of top executives who fall into this category increased by 50 since 2015 - when the average salary was $1.56million.
But remuneration expert Tim Nice says banks are going to be stricter on paying bonuses in the wake of the royal commission.
Mr Nice said that in the past, major banks had been more willing to issue bonuses, regardless of performance.
However, the executives' paychecks could bounce back after details of the scandalous royal commission are forgotten about.
'It's absolutely possible because the actual packages haven't changed, it's just the short-term bonuses haven't been reached this year,' remuneration expert Emma Grogan said..
Executives at NAB felt the pinch the least, seeing their paychecks drop $184,000 to $1.4million
