Profit target likely to elude Norris

Ralph Norris, chief executive of Commonwealth Bank, put the likelihood that the bank will achieve the profit target to earn his maximum bonus at less than 50 per cent.

Norris yesterday told a hearing of the Senate economics committee that his notional annual income of $16 million - as included in the bank's annual report - was misleading.

"Less than one third of that I have received. Even so it's a significant number. So it's certainly not $16 million.

"That's a number that if I was to hit all my performance hurdles between now and 2014 I would be fortunate enough to receive.

"But I would say the chances of achieving that are less than 50 per cent."

Three quarters of Norris' bonus is subject to the bank's total shareholder return (or the increase in the share price as well as divident payments) exceeding the average TSR for the 20 largest companies listed on the Australian Stock Exchange.

The last quarter is subject to the bank's ranking on several measures of customer satisfaction in consumer and business banking and wealth management, relative to other major banks.