Money

Commonwealth Bank executives hit where it hurts

At last it seems executives will be held accountable for their mistakes.

In the wake of the Commonwealth Bank money-laundering scandal, the bank has cut bonuses for chief executive Ian Narev and 11 of its senior executives to zero. 

The Australian reported that despite the fact CBA executives were set to receive as much as $20 million in short-term bonuses – up from last year’s $16M – they will now receive nothing for the year to June 2017. 

Bank directors have also taken a 20 per cent pay cut. 

In a statement today the board said it recognised the “heightened public interest” in CBA executives’ pay following Austrac’s claims the bank had committed more than 53,000 breaches of anti-money laundering legislation. 

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“Therefore, in advance of the presentation of CBA’s financial results tomorrow, the board advises that it has decided to reduce to zero the short-term variable remuneration outcomes for the CEO and group executives for the financial year ended June 30, 2017,” CBA chairman Catherine Livingston wrote in the statement.

“In reaching this conclusion the overriding consideration of the board was the collective accountability of senior management for the overall reputation of the group.”

While the public has clamoured for CBA’s chief executive Narev to stand down, Livingston said the board still had “full confidence” in his abilities. 

Read more: Commonwealth Bank in hot water over ‘serious’ breaches

 

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