Subscribe to our newsletter

CBA cuts executive bonuses to zero

CBA cuts executive bonuses to zero

Tim Stewart
— 1 minute read

The Commonwealth Bank board has announced it will not pay chief executive Ian Narev and his executive team a bonus this year, following the accusations AUSTRAC made last week.

In a statement to the ASX, CBA chair Catherine Livingstone said that at a board meeting on Monday it was decided that the annual bonus for the executive leadership team would be reduced to zero for the 2016-17 financial year.

CBA chief executive Ian Narev's total short-term incentive for 2015-16 was $2.86 million. In the previous financial year his short-term bonus was $3.18 million.

The 11 group executives reporting to Ian Narev all received short-term incentives of over $1 million in 2015-16.

Ms Livingstone said the board "recognises heightened public interest in executive remuneration, particularly having regard to the civil proceedings initiated last week by AUSTRAC".

"In reaching this conclusion the overriding consideration of the board was the collective accountability of senior management for the overall reputation of the group," she said.

The board also recognised its "shared accountability" by reducing non-executive director fees by 20 per cent in the current 2017-18 financial year.

CBA will release its annual result on Wednesday, while the full "remuneration outcomes" for 2016-17 will be laid out in CBA's annual report, which will be released on Monday.

 

CBA cuts executive bonuses to zero
investordaily image
ID logo

related articles

promoted stories