Westpac paid $8m for former boss' house

Former Westpac CEO Brad Cooper. File Photo / Kenny Rodger

Westpac Banking Corp paid $8 million to buy the Auckland home of former Westpac NZ chief executive Brad Cooper.

His replacement George Frazis started on March 2 and was paid A$1.348 ($1.71) million in the year to September 30, according to the Westpac annual report in Australia.

In June 2008 Westpac requested Mr Cooper to transfer to Sydney to be the parent's chief transformation officer.

Westpac agreed to purchase Mr Cooper's house in Auckland at fair market value but had the right to substitute a third party buyer if one could be found prior to settlement.

The fair market value was assessed at $8 million, notes to the Westpac accounts show. This was the average of two valuations.

Westpac was obliged to pay the maintenance on the property and paid $60,000 in maintenance costs in the period covered by the annual report.

Westpac had to extend the settlement date on the property to finalise regulatory approvals required to buy the property.

Westpac paid Mr Cooper A$245,399 in interest and associated compensation resulting from the delay in settlement, which was assessed on arms length terms, according to the annual report. Settlement of the purchase of the property by Westpac occurred on July 10.

The New Zealand Herald reported in September that the sale of the luxury North Shore clifftop mansion owned by Mr Cooper to the bank was approved by the Overseas Investment Office.

The property is in Winscombe St, Belmont. Mr Cooper purchased the house in 2007 from Robin and Erica Congreve.

Two thousand tonnes of concrete, wood and stainless steel were used in the construction of the award-winning house, which faces Rangitoto Island.

Mr Cooper was paid A$2.868 million in the year to September 30, according to the annual report.

Mr Frazis' payments comprised A$588,635 in fixed remuneration for the part year, $630,000 in cash short-term incentives for the part year and $121,679 in non-monetary benefits.

The report said that in line with Westpac policy there were no cash donations to political parties in New Zealand.

Spending on political activities by the bank in New Zealand in the year to September 30 amounted to A$950. The report did not disclose what the activities were.

- NZPA