NAB interim CEO and newly appointed chair Phil Chronican has said that the major bank is changing its criteria for executive pay in a letter to shareholders, saying the organisation is committed to regaining customers’ trust.
In the letter released to the ASX on Tuesday, the acting CEO described the progress of the bank’s reform program it established last year, that it said would focus on culture, accountability and governance.
Speaking on executive salaries, Mr Chronican said NAB is changing its “framework to ensure it provides the right balance of financial metrics, customer outcomes and the management of non-financial risks over the long and short-term.”
The bank is also aiming to make sure compensation reflects the individual and collective performance of its executives, the letter said.
It is still on the search for a new CEO, after prior boss Andrew Thorburn stepped down alongside former chair Ken Henry.
NAB, Mr Chronican also noted, has also returned more than $110 million to over 310,000 customers since June last year.
“The enormity of this task is not lost on me, because the royal commission is right,” Mr Chronican said.
“There is a big gap between where we are today and where we need to be.
“We are confident that the recommendations made by the commission will lead to a better financial services industry.”
NAB’s reputation has taken a beating since the royal commission, having been rated Australia’s most distrusted bank in a Roy Morgan survey.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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