Final four months nets ex Westpac boss $12m

Gail Kelly left Australia's Westpac in good shape, say bank chiefs. Photo / AP

Gail Kelly collected nearly A$12 million ($12.8 million) for her final four months work as Australian chief executive of Westpac.

The bank's annual report shows Kelly received cash and share-based payments worth A$11.76 million between October 1 last year and when she retired on February 1 this year.

Her successor, Brian Hartzer, got A$4.1 million for his period in the top job from February 2 to the end of the bank's financial year on September 30.

Westpac NZ chief David McLean, appointed in February, earned a A$1.7 million ($1.8 million) remuneration package in the 2015 financial year, according to the bank's annual report.

Most of Kelly's package was made up of A$9.5 million worth of share-based payments. She also received a A$1 million salary and a A$1.2 million cash bonus.

Hartzer got a fixed salary of A$2.4 million plus a A$1.2 million cash bonus and A$436,856 in share-based payments.

Writing in the annual report, Hartzer and chairman Lindsay Maxsted saluted Kelly, saying she had left Westpac in good shape.

Both men also addressed the issue of the new rules imposed on banks to bolster their capital reserves to protect against future financial shocks.

Australia's big four banks have tapped investors to raise about $20 billion this year to meet the new rules, and controversially lifted home loan rates to help cover the cost.

The cost of making sure the banks were "unquestionably strong" had to be borne by both shareholders and customers, Hartzer said. It was often forgotten a bank's capital base was largely made up of the savings, retirement funds and superannuation balances of millions of Australians and the bank had an obligation to deliver a return on their investment.

By lifting home loan rates and slowing the pace of growth of dividend payments, he said, Westpac had tried to strike a fair balance.

- AAP, staff reporter