CBA chief Narev targets $4.1m bonus
Commonwealth Bank chief Ian Narev is in line for a bonus of up to $4.1 million, on top of his $1.84 million base pay, should he meet a series of performance hurdles over the coming four years.
Shareholders will vote in October on whether to grant Mr Narev reward rights on 78,681 shares, currently worth a face value of $4.1 million.
The criteria for Mr Narev's bonus would be split into two portions: 75 per cent was subject to performance hurdles which rank the bank's share performance against the performance of the 20 largest listed companies in Australia.
The remaining 25 per cent will depend on a performance hurdle linked to CBA's customer satisfaction ranked against other major banks.
"If shareholder approval is obtained, the reward rights will be granted to Mr Narev following the 2012 annual general meeting," the company said, scheduled for October 30. "The reward rights will be granted at no cost to Mr Narev."
Mr Narev would only be eligible for the full amount at the end of performance period, which concludes in June 2016.
CBA reported a full-year profit of $7.09 billion, up 11 per cent in the year. The 2011-12 result was the biggest profit by a non-mining company in Australia's history. In July, Mr Narev's base pay was frozen as long with the top paid executives at the bank, in light of tougher conditions for the industry.