Pay drops for top bank bosses

Wednesday, 8 November 2017

Two New Zealand bank bosses have taken a pay cut.

Westpac's annual report shows its New Zealand chief executive, David McLean, earned A$2.1 million ($2.3m) in the year ended September 30.

That's down from A$2.18m the previous year.

ANZ's New Zealand chief executive David Hisco's pay was also down slightly, at $4.27m this year.

Banking expert Claire Matthews, from Massey University, said from McLean's perspective the drop was not big. 'It's almost a rounding error.'

She said it was hard to determine what would have prompted the reduction.  The salary was a total package, so a decline could include something such as a car that dropped in value over the year. 

She said it could be that the portion of his pay that was tied to performance indicators had changed. 'It could be that he didn't get as much of the 'at risk' portion - last year he might have got 75 per cent and this year 70 per cent or it could be that last year was exceptional and he got 100 per cent and this year it's 75 per cent.

BNZ has also recently reported its results but does not declare its chief executive's salary.