The more than $5 million pay package for Westpac's New Zealand chief executive has been criticised by the bank's union as unethical, particularly as it had focused on short-term gains.George Frazis was paid A$4.39 million (NZ$5.65 million) for the year en
The more than $5 million pay package for Westpac's New Zealand chief executive has been criticised by the bank's union as unethical, particularly as it had focused on short-term gains.
George Frazis was paid A$4.39 million (NZ$5.65 million) for the year ended September 30 to head the bank's New Zealand operations. That was higher than the remuneration for CEOs of the largest listed companies, and New Zealand's largest company, dairy co-operative Fonterra.
Bank workers' union Finsec criticised Mr Frazis' pay, particularly given current soft economic conditions.
"We think it is unethical to pay such a large salary to one person while the economy falters and the average worker has seen no or limited wage growth," said Andrew Campbell, Finsec campaigns director.
A high proportion of the package related to short-term benefits, which concerned the union.
"An excessive focus on short term gains for senior bankers was a key driver of the global financial crisis and economic collapse," he said.
The pay package raised questions about the need for executive salary controls in New Zealand.
"Hard working front line staff earn a fraction of this but often work long hours in tough conditions. We urge the Westpac board to consider measures to make pay across the bank more equitable," Mr Campbell said.
Excessive remuneration has become increasingly controversial in Australia, where New Zealand's Ralph Norris received $A16m for the 2010 financial year, topping the packages of Australian bank CEOs.
