RETAIL BANKING | Tony Chua, Australia

CBA chief Norris' pay rises due to share based payment

Yet despite his 6 percent salary rise, CBA chief Ralph Norris' short-term incentives were cut by 10 percent due to the bank's 1 percent slide in net profit. While Norris' fixed cash pay rose marginally, up from $3.1 million to $3.2 million, the value of his share-based performance rights, which are a long-term incentive and won't vest for several years, jumped from $1.28 million to $1.94 million, according to a report in The Australian.The CBA chief's short-term incentive fell from $1.9 million to $1.73 million.Mr Norris and his senior executive team, as well as board members, will take a pay cut this financial year.As announced in April, the CEO will take a 10 percent pay cut, with directors accepting a similar reduction and senior executives taking a 5 percent hit.Staff earning more than $100,000 will have their salaries frozen, while those earning less will get a 1.5 percent pay rise.CBA said at the time that the adjustments were designed to "preserve jobs as best we can and tailor our costs to a weaker economy."The bank last month announced a 1 percent fall in net profit to $4.7 billion. Cash profit, which strips out one-off items, was 7 percent lower at $4.4 billion.

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