Norris retires from CBA, Narev takes over

Online business reporter Michael Janda

Updated July 22, 2011 13:44:32

The Commonwealth Bank's chief executive Ralph Norris has announced his retirement in November, to be replaced by Ian Narev.

Ralph Norris has been the head of the CBA since taking over from David Murray in 2005.

Ian Narev has been with CBA since May 2007, and led the bank's $2.1 billion acquisition of Bankwest in 2008, as well as its investment in Aussie Home Loans.

He is, like Ralph Norris, a New Zealander, with degrees in law from Auckland University, Cambridge and New York University.

He worked from 1998 to 2007 with global consulting firm McKinsey.

At 44 years of age, Mr Narev will receive a fixed salary of $2.5 million per annum, with an initial short-term performance incentive of up to $2.5 million, and this financial year's long-term incentive valued at up to $2.5 million.

However, last year Ralph Norris raked in $16.1 million in salary and performance pay.

Mr Narev has been the group executive for the Commonwealth's business and private banking department for two years.

CLSA banking analyst Brian Johnston says his business banking experience makes him a good choice.

"When you have a look at Commonwealth Bank, it dominates the market share in all the retail banking side, in the business banking its weak, or weaker," he observed.

"That's where the opportunity is, the opportunity to use their technology to build market share in business banking."

Topics: business-economics-and-finance, company-news, banking, management, australia, sydney-2000

First posted July 22, 2011 09:41:07

Source: http://www.abc.net.au/news/2011-07-22/norris-leaves-cba-narev-new-ceo/2805864

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