Matt Comyn, CBA bosses secure big pay rises as | Australian Markets
Commonwealth Bank of Australia bosses have pocketed pay rises of up to 17 per cent for a report yr that thrust the bank’s annual revenue back over $10 billion and included the closure of BankWest’s final branches.
Australia’s greatest home lender on Wednesday revealed fixed pay for its senior executives was elevated between 4.5 per cent and 16.7 per cent within the 2025 financial yr to “better align” CBA’s remuneration with what was on offer from rival and offshore banks and replicate its “relative size and scale”.
Chief govt Matt Comyn’s fixed remuneration was cranked up 14 per cent to $2.85 million — his first increase since an 8.7 per cent rise in 2022 — although he truly took home a lowered $7.02m for the 12 months to June 30 as a result of of adjustments to deferral and holding intervals for his performance-related stock rewards.
CBA mentioned in its annual report Mr Comyn’s pay rise recognised his “experience, sustained performance and leadership impact”, as properly as consideration of its “size, scale, and market capitalisation, and emerging market trends”.
His six senior lieutenants scored wage will increase averaging 10 per cent.
The bank, which makes up about 12 per cent of the S&P-ASX200 index, led into the report revenue with a share market run that took its stock to $192 in June, capitalising it at over $300 billion, earlier than a latest retreat.
However, the stock was hammered on Wednesday, giving up 5.4 per cent to $169.12 as traders expressed concern about rising strain on CBA’s margins and revisited its worth. The plunge wiped $16b from the bank’s capitalisation.
“The market continues to question its lofty valuation,” IG Markets analyst Tony Sycamore mentioned, including that rate of interest cuts by the Reserve Bank of Australia “reduces the ability of the bank to leverage its large deposit base and as margins are compressed”.
CBA’s money revenue, which is the bank’s most popular earnings measure, was 4 per cent increased at $10.25b — bettering the $10.16b returned for 2023. Statutory earnings had been 7 per cent increased at $10.13b.
The outcome was accompanied by a $2.60-a-share absolutely franked closing dividend, rising the annual payout to $4.85. The dividends will distribute $8b between about 13 million Australian traders.
CBA attributed the report outcome to increased business and personal lending, and decrease loan impairments on the back of an enhancing financial outlook that has boosted client confidence.
“We know many Australians have found the past four years challenging, particularly dealing with cost-of-living pressures,” Mr Comyn advised a briefing on Wednesday.
“This past year has brought some relief through easing inflation, lower interest rates and tax cuts.
“Many households are now experiencing a rise in disposable income.
“And discretionary spending has also picked up, reflecting growing consumer confidence.”
CBA closed Bankwest’s department community final yr, changing the historic WA lender to a digital-only bank. It mentioned on Wednesday that unsurprisingly, visits to Bankwest’s web site leapt 50 per cent during 2024-25, however it additionally revealed the business gained 50,000 prospects during the yr.
In a separate announcement, CBA unveiled a new partnership to widen the rollout of artificial intelligence systems, saying the deal with OpenAi would make it more environment friendly and profitable.
“To be globally competitive Australia must embrace this new era of rapid technological change,” Mr Comyn mentioned.
“Our strategic partnership with OpenAI reflects our commitment to bringing world-class capabilities to Australia, and exploring how AI can enhance customer experiences, better protect our customers, and unlock new opportunities for Australian businesses.”
Mr Comyn mentioned the rising use of AI didn’t essentially imply more job cuts on the bank — worker numbers truly rose 5 per cent to 51,346 final yr, largely due to the addition of 2000 technology roles — insisting it might be utilized in partnership with the workforce.
“Equipping our people with the most advanced AI tools and capability is a key objective of this strategic partnership,” he mentioned.
“We will continue to invest in our people and their AI proficiency so they can better support our customers, while building their skills and experience.”
The accelerated technology investment, nevertheless, contributed to a 6 per cent increase in CBA’s working prices, including to analysts’ considerations for its 2026 revenue outlook.
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