Bank executives caught with their hand in the cookie jar
Written on the 11 August 2016 by James Cagney
Once again the big banks dictate the state of the economy and not the Reserve Bank of Australia (RBA) or the Australian Government. The RBA in attempt to stimulate the economy and increase employment reduced the cash rate to 1.5% on 2nd August 2016. Then we all waited for the banks to act so the consumer could get the benefit of the rate decrease. But no the big banks said that they were not able to do this giving a multitude of lame excuses. Malcolm Turnbull and the Treasurer made a lot of noise and fan fair about it . Labour's Bill Shorten called for a Royal Commission into the banking sector. Frankly, it is like trying to put out a raging fire with a bucket of water. Then to top it all unashamedly, Andrew Thorburn the CEO of the Commonwealth Bank, announce a profit of $9.45 Billion annual profit for the bank. Do these people have any morals?
Here is the real reason why they do not pass on the RBA's rate cuts - THE PAY PACKETS AND BONUSES OF BANK EXECUTIVES. In an article in the Australian Financial Review (AFR) written by Adele Ferguson in November 15, 2015 she exposed Westpac Board's creative accounting practices so the bank executives could reach their large bonuses. The retiring CEO of Westpac,Gail Kelly, benefited from this creative accounting with a package of $11 million upon leaving. Since joining Westpac Brian Hartzer is estimated to have realized $24.5 million largely due to 332,000 shares in his package. This is incredible, unbelievable, immoral and ridiculous yet the Australian government allows this to happen because it means a windfall for them in income tax they receive. In essence they are sacrificing long term goals for short term gain. Let's not only pick on Mrs. Kelly and Mr. Hartzer from Westpac - what did the other bank executives earn in 2015:
$$$$ - Mike Smith CEO of ANZ salary $3.6 million plus $4.0 million in bonuses.
$$$$ - Andrew Thorburn CEO of NAB salary $2.2 million plus $2.64 million in bonuses
$$$$ - Ian Narev of CBA CEO salary $2.65 million plus $3.18 million in bonuses
$$$$ - Brian Hartzer of Westpac CEO (for eight months) salary $2.686 million plus $2.49 million in bonuses.
It is no wonder that the CEO's and the Board members of the big banks put their their own self interest.first, then the interest of the share holders and then their customers' interest a distant third. From the research quoted in this AFR article "The persistence with which the bonuses are paid at or above target at Westpac, ANZ and CBA calls into question the extent to which these bonuses are genuinely at risk". In other words the the bank executives unashamedly set their targets so they can achieve them. Is that what targets are for? They big banks are obviously a law unto themselves and the government can do very little about it. And once again the executives of the big bank have been caught with their hand in the cookie jar the consumer is left with the crumbs and we believe there is little we can do about it. Yes, there is and you need to take ACTION.
Don't let the banking system dictate to you. Stop paying these bank fat cats their big salaries and bonuses.. James Cagney will look at your financial structure and recommend changes so you pay less interest into the system. We will look at how much income tax you pay and recommend how you can substantially reduce this. We look at a strategy for you so you can benefit from your hard work and not give so much to the banks and the government. We will do this Financial Assessment FREE and their is no obligation to change your bank if you don't want to. We have more bargaining power as a group with the banks than you do as an individual. You can pay the banks and the government less by clicking >>> FREE Financial Assessment and we will contact you with the next step. Anthony Robbins said "In the history of the world, not one goal has ever been achieved without action". Take ACTION now.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Author: James Cagney