ASB boss' big pay packet cut

ASB chief executive Vittoria Shortt. Photo / file

ASB chief executive Vittoria Shortt took more than a $500k hit to her pay package in the bank's latest financial year after her short-term bonus was slashed.

Figures from the annual report of ASB's parent Commonwealth Bank of Australia show Shortt received total remuneration of A$1.83 million ($2.016m) in the year to June 30, down from A$2.3m ($2.54m) the previous year.

Although her base remuneration rose from A$937,427 to A$948,383, Shortt's employer superannuation contribution dropped slightly.

But it was her cash short-term variable reward or bonus that fell the most, dropping from A$940,777 to A$385,239.

CBA executives, including the ASB CEO, can earn a maximum of 150 per cent of their fixed remuneration - which includes their base pay and superannuation - through the short-term variable reward.

Whether they earn the bonus is 30 per cent based on the financial performance of the bank and 70 per cent on non-financial measures including customer experience, staff engagement and strategy.

Shortt could have earned up to A$1.465m through the bonus but was awarded A$770,478 - only 53 per cent of her maximum.

Half of the short-term variable reward is deferred and paid in shares in CBA that vest over one and two years, the other half is paid in cash.

ASB's cash net profit after tax fell 20 per cent to $967m during the year to June 30 and its net profit after tax dropped 25 per cent to $958m.

The bank's lower profit was because of the significant impacts of Covid-19 and lower interest rates.

ASB increased its impairment losses on financial assets to $306m, up from $198m.

ASB's net promoter score, which measures customer experience, shows it was ranked the third best bank for retail banking and first for business and rural banking

The annual report shows Shortt also paid back most of a A$3.3m loan she had with the bank. As of June 30, 2020 the loan balance was A$138,774.

Shortt became ASB chief executive in February 2018 moving from a role at CBA.