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Letter to AFR editor

16 October 2003

The Editor
The Australian Financial Review
201 Sussex Street
Sydney NSW

By Facsimile

Dear Sir

I refer to an article that appeared in this morning’s edition under the headline "Angry investors roll Murdoch" and would like to correct the statement made that the Commonwealth Bank has deferred option plans in the past 12 months as outrage over excessive options packages has spread to Australia.

The Commonwealth Bank has been very clear in its treatment of options and at no time has deferred any option plan. In the Bank’s Corporate Governance Statement issued by the Chairman on 22 August 2002, it said:

"From the beginning of this financial year (1 July 2002) options have been eliminated from the remuneration package of Executives and the total value of the long term incentives allocated under the Equity Reward Plan will be in the form of Reward shares. These shares only vest to the Executive provided the prescribed performance hurdles are met."

I would appreciate the position being clarified to your readers.