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Swan urges banking executives take pay cut

Treasurer Wayne Swan has urged banking executives to take a pay cut in order to get back in the good books with the Australian public.

Australians are quickly losing faith in the banks, as credit for small business dwindles, with the big banks refusing to pass on the recent cut to interest rates made by the RBA.

Swan said banks needed to win back the trust of the Australian people, and one way to do that was to reduce their salary packages.

The call has been made in light of Commonwealth Bank chief executive Ralph Norris announcing he would take a 10 percent pay cut. The bank has also announced 10 of their top senior executives would take a five percent pay cut, along with measures to prevent widespread redundancies, including wage rises to those earning less than $100,000 to just 1.5 percent.

In a surprise twist, Opposition Leader Malcolm Turnbull has backed Mr Swan, urging bank executives – and other bosses – to follow suit and cut their pay before those of lower-paid workers.

“Real leaders lead by example. And bosses who seek to cut pay or hours rather than lay off employees should start with their own salaries and show, as the CBA has done, that they are prepared to take the biggest cuts themselves.”

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