Suncorp CEO must be a shareholder

Suncorp has become the first Australian bank to insist that its new chief executive officer must buy shares in the company. Suncorp appointed former British soldier Patrick Snowball as its new chief executive on Wednesday.

Mr Snowball's base salary will start at $2.1 million, but he will have to purchase $500,000 worth of Suncorp shares at his own expense. If all performance targets are met, the four-year deal could deliver him more than $27.5 million in cash and shares, plus some generous relocation expenses.

The Australian Shareholders Association applauded Suncorp's decision. "It will align his interests with that of shareholders and that can't be a bad thing," ASA chief executive Stuart Wilson said. The productivity commission is currently investigating executive salaries for the federal government.

Source: Sydney Morning Herald