Published: Wed, August 09, 2017
Money | By Armando Alvarado

CBA board pulls back on senior executive remuneration

CBA board pulls back on senior executive remuneration

"The board recognises heightened public interest in executive remuneration, particularly having regard to the civil penalty proceedings initiated last week by the Australian Transaction Reports and Analysis Centre", Ms Livingstone said in a statement.

"The board also recognised that it has shared accountability and therefore has chose to reduce non-executive director fees by 20% in the current 2018 financial year".

Chairman Catherine Livingstone on Tuesday said the board had chose to cut short-term incentives for the year to June 30, 2017 for the group executives, and fees paid to the board of directors would also be cut by a fifth.

Last year, Mr Narev was paid a fixed salary of $2.65 million, and six other senior executives at the bank earned fixed pay of more than $1 million.

"We take it extremely seriously, right up to the board level and I as CEO am spending a lot of time on this at the moment", he told the Australian Broadcasting Corporation ahead of the bank's annual results announcement tomorrow.

The board this week chose to ax short-term incentives for Mr. Narev and senior managers in the just-ended year to reflect their collective responsibility for the bank's reputation.

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He has been in the role for around 18 months, since the £7bn merger of Paddy Power and Betfair was completed past year . Underlying Ebitda for the full year is expected at between GBP445 million and GBP465 million.

CBA chief executive Ian Narev's total short term incentive for 2015-2016 was $2.862 million.

CBA's directors met on Monday, and investors reportedly debated how the board needs to respond to last week's claims by Austrac.

Commonwealth Bank of Australia fell almost 1.3 percent, dogged by financial intelligence agency AUSTRAC's money-laundering allegations.

"Reputational damage is meaningful and could reduce customer activity across a broad range of products and services".

Commonwealth Bank has posted full year cash profits of close to $10billion, a day after announcing a slashing of executive bonuses and director's pay.

CBA has been under the limelight for its executive pay packages, past year becoming the first major bank in the country to receive a first "strike", with more than a quarter of its shareholders voting against the executive's pay packets.

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