ANZ boss banks 11pc pay boost

David Hisco's pay rise comes as the New Zealand division of the bank posts a record result this year. Photo / Richard Robinson

Workers' union says ANZ chief executive being paid more than 80 times the average of bank workers.

ANZ's New Zealand boss has received an 11 per cent boost to his pay package mainly driven by an increase in rights to own more shares in the bank.

David Hisco's remuneration rose from A$2.93 million to A$3.26 million ($3.73 million to $4.15 million) in the year to September 30, although his 2011 year was less than a full year as he started on October 13, 2010.

Hisco's base salary rose A$40,000 to A$1 million although non-monetary benefits, including relocation expenses, parking and taxation services fell A$47,526 to A$309,757.

But it was Hisco's short- and long-term incentives that really made an impact on his total remuneration.

If he meets his short-term targets Hisco will receive options and rights worth A$602,172 - up from A$238,076 in the previous year. And his long-term incentive benefits could yield him rights worth A$412,856 up from A$248,567.

Hisco's rise comes as the New Zealand division of the bank announced a record result this year. Its underlying profit was up by 10 per cent to a record $1.37 billion over the year while its statutory profit was up 17 per cent to $1.26 billion.

Peter Clare, at Westpac bank, also received close to an 11 per cent rise in his pay package. His remuneration rose from A$2.68 million to A$2.97 million as the local bank's cash earnings rose 22 per cent to $707 million.

ASB chief executive Barbara Chapman's remuneration was not included in parent company Commonwealth Bank of Australia's 2012 annual report while BNZ parent National Australia Bank has yet to release its annual report for this year.

Andrew Cassidy, finance spokesman for the First Union, which represents the banking sector, said he was not against banks making healthy profits but the ratio between the average worker's pay and the chief executive was now ridiculous.

"Thirty years ago it might have been 15 times the average worker's pay."

Cassidy said Hisco's salary was more than 80 times the average bank worker's annual salary of $50,000. He said workers' share of profits from businesses had reduced dramatically in the past 30 years and while chief executives had benefited from a shift towards profit-linked performance-based pay, workers were not getting that benefit. Bank workers were struggling to get a rise of two to three per cent.

"It doesn't appear that the banking sector has learned from the global financial crisis."

Meanwhile, ANZ's annual report also revealed its programme to drop the National Bank brand cost it A$105 million after tax.