Chairman of Commonwealth Bank, David Turner has strongly defended the compensation package that was given to the CEO of the bank, Ralph Norris. He was paid $16 million last year as salary which was severely criticized.

During the general meeting of the band, David broke down each of the component of the salary that was being paid to Ralph. His calculations have shown that the actual receivable of Ralph was much lesser than what is being shown and even lesser than what he is getting in 2010.

David showed that 12 months back, Ralph was getting a salary of $2.9 million in form of cash and long-term benefits were close to $6.2 million. That makes his salary $9.1 million and not $16 million as said.

The rest of the salary was in fact in form of share-related payments which are directly connected to the performance of the bank.

David also reiterated that Ralph is responsible for the turnaround of CBA and that he has steered the same well during 'very difficult times'. Now, the position of the bank is No. 1 in the list of four and has given highest return to the shareholders in the industry.