Senior executives at Westpac for the second year have missed out on getting shares as part of long term incentives plans.
Chairman Lindsay Maxsted told the AGM that generally the board of directors was generally pleased with the performance of the management team.
“The financial result was ahead of the Board’s expectations set in the early part of the year while the strengthening of the balance sheet was well above expectations,” he says.
“Of equal importance, the business is in good strategic shape. All divisions are well placed and the business is making good progress on its strategic investments.”
However, no long-term incentives met the hurdles set in 2014.
“As a result, no executive received shares from long-term incentive plans this year,” says Maxsted.
But the board increased the short-term incentives by an average of 14%.
This followed an average 11% reduction in short-term incentives in 2016.
Westpac has changed the way it reports what it pays senior executives so that, at first glance, it appears that its CEO, Brian Hartzer, actually got less last year than previously reported.
However, Hartzer still earned in 2017 more than double his base pay of $2,686,000 (which didn’t increase) mainly because of rises in bonus payments.
The bank’s annual report shows Hartzer being paid $5,456,844 in 2017, a nice rise from $4,938,059 in 2016.
Hartzer was awarded 111% of his short term bonus with half of it — $1,490,730 — paid in cash now and the rest deferred.