In light of the recent Corporations Act changes relating to executive remuneration and APRA remuneration standards it is worth noting the structure of the remuneration of the new CBA CEO:

There are three components of Mr Narev’s remuneration. They are:
(a) Fixed Remuneration
Mr Narev will be paid Fixed Remuneration, comprising regular cash payments, any salary sacrifice items, and superannuation. The initial total Fixed Remuneration will be reviewed annually.

(b) Short Term Incentive
Mr Narev will be eligible for discretionary annual short term incentives.

The initial annual short term incentive target is a fixed amount, and will be pro-rated for the period from 1 December 2011 to 30 June 2012, with Mr Narev’s short term incentive for his current role applying from 1 July 2011 to 30 November 2011. The target short term incentive will be reviewed annually.

Half of any short term incentive awarded for the 2011/12 year will be paid in cash following the end of the performance year, with payment of the other half deferred for a year, and payable after that time with interest.

(c) Long Term Incentive
Mr Narev will be eligible for an annual long term incentive award in accordance with the Group Leadership Reward Plan. The Group Leadership Reward Plan is described in the 2010 Annual Report.

The long term incentive award to be made during the 2011/12 year is an allocation of reward rights under the Group Leadership Reward Plan with a fixed total target value at vesting. Vesting will be subject to key performance indicators determined by the Bank’s Board. The award is subject to shareholder approval at the 2011 AGM.

The amount and terms of subsequent grants will be determined by the Board in its discretion and will be subject to any necessary regulatory and shareholder approvals.