Norris's pay packet cut in half

Commonwealth Bank of Australia chief executive Ralph Norris. File photo

Commonwealth Bank of Australia chief executive Ralph Norris's pay package dropped by 47 per cent in the last financial year to A$8.64 million.

Norris received remuneration worth A$16.2 million in the 2009/10 financial year, but a significant change in the value of long-term incentives reduced the value of his remuneration in 2010/11, CBA's annual report shows.

Norris, who will retire in November, was paid A$4.76 million in cash over the year, comprising a base pay of $3.12 million and A$1.64 million in short-term incentives.

Further pay included A$1.82 million worth of shares and rights paid as long-term incentives, which were down from $9.19 million in value in the previous year.

The reason for the difference in value of long-term incentives was the bank's better than expected financial performance in 2009/10 but lower than expected customer satisfaction performance in 2010/11.

CBA's net profit rose 20 per cent to A$5.66 billion in 2009/10.

In the year to June 30 just passed, CBA delivered a 13 per cent rise in net profit to A$6.4 billion while cash profit was $6.835 billion.

The bank said 59 per cent of Norris' pay was related to performance.

The next highest paid CBA executive in the 2010/11 year was chief risk officer Alden Toevs, with remuneration worth A$4.36 million.

Incoming chief executive Ian Narev, who is currently executive of business and private banking, received remuneration worth A$2.68 million.

- AAP