We Think Some Shareholders May Hesitate To Increase Commonwealth Bank of Australia's (ASX:CBA) CEO Compensation
Key Insights
- Commonwealth Bank of Australia to hold its Annual General Meeting on 15th of October
- Salary of AU$2.82m is part of CEO Matt Comyn's total remuneration
- Total compensation is 187% above industry average
- Over the past three years, Commonwealth Bank of Australia's EPS grew by 2.9% and over the past three years, the total shareholder return was 101%
Under the guidance of CEO Matt Comyn, Commonwealth Bank of Australia (ASX:CBA) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of October. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Commonwealth Bank of Australia
Comparing Commonwealth Bank of Australia's CEO Compensation With The Industry
Our data indicates that Commonwealth Bank of Australia has a market capitalization of AU$283b, and total annual CEO compensation was reported as AU$8.5m for the year to June 2025. We note that's an increase of 19% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$2.8m.
On comparing similar companies in the Australian Banks industry with market capitalizations above AU$12b, we found that the median total CEO compensation was AU$3.0m. Hence, we can conclude that Matt Comyn is remunerated higher than the industry median. Moreover, Matt Comyn also holds AU$13m worth of Commonwealth Bank of Australia stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | AU$2.8m | AU$2.5m | 33% |
| Other | AU$5.7m | AU$4.7m | 67% |
| Total Compensation | AU$8.5m | AU$7.2m | 100% |
Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Commonwealth Bank of Australia sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Commonwealth Bank of Australia's Growth
Over the past three years, Commonwealth Bank of Australia has seen its earnings per share (EPS) grow by 2.9% per year. In the last year, its revenue is up 5.5%.
We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Commonwealth Bank of Australia Been A Good Investment?
Most shareholders would probably be pleased with Commonwealth Bank of Australia for providing a total return of 101% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Commonwealth Bank of Australia that investors should look into moving forward.
Important note: Commonwealth Bank of Australia is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.