Westpac's Kelly pockets $9.2 million

The banks' profits are soaring and their chief executives are going to need bigger wallets.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite having taken a pay cut in 2013 as she drove the bank towards a record $7.1 billion profit, Westpac's (ASX: WBC) CEO Gail Kelly has pocketed more than $9 million for the year, according to the group's annual report.

The report showed that her pay cheque totalled $9.2 million, down from the $9.6 million she received in 2012. This exceeded the amount earned by Commonwealth Bank's (ASX: CBA) boss, Ian Narev, who earned $7.8 million in 2013 after delivering a record profit of $7.8 billion. The amount earned by the chief executives of ANZ (ASX: ANZ) and NAB (ASX: NAB) will be revealed over the next week or so when they release their annual reports.

According to The Australian Financial Review, Kelly's pay packet consisted of $3 million in fixed salary as well as other cash and share-based payments attributed to meeting future performance hurdles. Westpac executive Brian Hartzer was also paid a total of $7.5 million for the year.

Foolish takeaway

Although the banks' profits are soaring and expected to remain strong in the near-term, their shares have become overpriced with investors heavily attracted to their high yields. As such, the banks are not the best place for your money at this time.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »