Talk about watching your bottom line.
The Australian Financial Review has reported that National Australia bank tinkered with its bonus scheme, saving $30 million a year by, well, paying less bonuses. The article said it changed the rules last year.
Apparently, according to The Fin, NAB is paying less bonuses at the lower end. As well as giving line managers more control over who gets them. Bad news if you two don’t really get on.
Sources told Rachel Nickless that the new scheme was bad for morale, as even if some staff were doing better they were getting less of a payout.
“Staff were getting better ratings than a previous year and still got slightly worse financial outcomes. What message does that send to morale?” the unnamed source said.
In the article, it’s mentioned that ANZ also recently changed its bonus scheme, paying the top performing five per cent of staff better bonuses, then everyone in the middle 65 per cent smaller ones.
ANZ’s doing something right though. Yesterday the bank posted a first half profit slightly above expectations, and increased its dividend. The interim dividend of 73 cents, fully-franked, was up 11 per cent on last year, but ANZ said that was a rebalancing to keep the dividends more even for each half.
NAB’s results are out next week.
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