Big bank CEO salaries off the back of terror regime in banks

November 21, 2013

Big bank CEO salaries off the back of terror regime in banks

Big profits and massive salaries paid to bank CEOs come off the back of aggressive sales targets and an associated climate of fear in banks, says FIRST Union, who will tomorrow present a research paper on the ‘terror regime’ in our banks.

In the past week the New Zealand Westpac, ANZ and BNZ CEO annual salary figures have been released, ranging from NZ$2.9 million (BNZ) to NZ$4.1 million (ANZ).

“While those at the top of the pile are awarded multi-million dollar salary packages, front line staff are facing a sales targets regime that is leaving many suffering high levels of stress and anxiety,” said Robert Reid, General Secretary, FIRST Union.

“Bank staff are incentivised to drive up New Zealand household debt as much as they can in order to boost their company’s profits. If workers don’t meet targets, they’ll be put on a performance improvement plan. If there’s no improvement at the end of that, they will be sacked or forced out of the bank.”

“CEO pay in banks is well out of kilter with the rest of their staff. The ANZ CEO is paid over 100 times more than front line staff at his bank.”

Robert Reid said the union was following with interest a referendum in Switzerland this week on capping executive pay at no more than 12 times the amount of a firm’s lowest paid worker.

FIRST Union will tomorrow present the paper Women and work in the New Zealand banking industry: Targets and debt following the crisis at a seminar at AUT in Auckland tomorrow.

Background: info on the Switzerland referendum is here http://www.theguardian.com/business/2013/nov/14/swiss-divide-1-12-executive-pay-referendum

ENDS

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