BNZ boss quits for top Aus job
Outgoing Bank of New Zealand chief executive Andrew Thorburn will receive a multimillion-dollar pay rise when he steps into the top job at parent company National Australia Bank.
The bank announced today that Thorburn would replace Cameron Clyne, also a former head of BNZ, in August.
Thorburn is set to double his BNZ pay package of A$2.59 million ($2.8 million) in the 2013 financial year, according to information filed with the ASX.
His new base salary will be A$2.2m, with short-term incentives worth up to an additional A$3.85m if he exceeds set targets.
Long-term incentives will add A$2.86m, subject to shareholder approval at NAB's annual meeting in December.
Those rights are vested over four years and subject to performance against total shareholder returns.
Combined, the pay package could top A$6m in any given year.
The new job comes with greater responsibilities as Thorburn moves from heading a team of 5500 staff to NAB's 42,000 people.
The Melbourne-born banker has worked in New Zealand for 19 years, holding various banking positions, including more than five years in the BNZ chief executive role.
Now he will head back to Australia, where he was previously head of retail banking at NAB.
BNZ chairman John Waller said Thorburn's replacement would be announced "in due course".
He said Thorburn had boosted the bank's profits from $557 million in 2008 to $788m last year.
"Deposits increased from $24 billion to $38b, and we've achieved a world-class cost-to-income ratio of 40.3 per cent," Waller said.
Thorburn said he was excited about the opportunity to lead the NAB team.
However, that was tinged with sadness at the prospect of leaving BNZ.
"At BNZ I have worked with a brilliant bunch of people who care deeply about what they do for New Zealand," he said.
"My time at BNZ has challenged and developed me as a leader."
Clyne said the top job had taken a personal toll and it was time to retire from executive life.
"I am leaving to spend some much-needed time with my young family," he said.
- Fairfax Media