Loss-making BOQ pays CEO $1.8m
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SYDNEY, Nov 9 AAP
November 09 2012, 2:57PM
Bank of Queensland's (BOQ) chief executive was paid $1.8 million, including a half million dollar bonus, in the same year the company made a loss.
BOQ posted a loss of $17 million in the year to August 31, the first by a local bank in two decades.
The result was caused by $401 million in costs from unrecoverable loans due to BOQ's exposure to the struggling property market in Queensland, where 60 per cent of its loans are written.
The bank's annual report, released on Friday, shows chief executive Stuart Grimshaw's remuneration in the year to August totalled $1.8 million, which included about $1.6 million in cash.
His salary was $1.04 million, lower than the $1.55 million paid to previous chief executive David Liddy in the previous year.
Mr Grimshaw was also paid short-term incentives of $484,000, about 55 per cent of his potential bonus.
The short-term incentives were awarded according to the bank's performance against its net profit target, its cost-to-income ratio, and on individual performance criteria, the report said.
In the report, Mr Grimshaw and chairman Neil Summerson said BOQ was working to manage its risk and focus on sales and service to return value to its shareholders.
"The building blocks are in place for growth and the focus is now on execution and delivery," they said in a joint statement.
"The bank is becoming operationally fit in order to deliver better service for customers and profitable growth for shareholders."