Commonwealth Bank axes short-term bonuses as Austrac scandal pressure mounts

THE Commonwealth Bank has scrapped the 2017 bonuses for chief executive Ian Narev and senior executives following the bank’s alleged 53,000-plus breaches of anti money-laundering and counter-terrorism financing laws.

Commonwealth Bank chief Ian Narev in a briefing in Sydney on Sunday.

THE Commonwealth Bank has scrapped the 2017 bonuses for chief executive Ian Narev and senior executives following the bank’s alleged 53,000-plus breaches of anti money-laundering and counter-terrorism financing laws.

Those bonuses last year amounted to $2.8 million for Mr Narev, as part of an $8.8 million pay cheque.

In the 2016 financial year, the bank collectively paid out $8 million to the CEO and 11 executives.

CBA chair Catherine Livingstone.

Chair Catherine Livingstone — who will cop a $174,000 pay cut to about $700,000 as a result of the decision — said in a statement on Tuesday that Mr Narev “retains the full confidence of the board” but the short-term incentives were cut to demonstrate “collective accountability”.

CBA’s directors have also taken a 20 per cent pay cut — stripping about $60,000 from their $300,000-a-year salaries — in the wake of Austrac allegations the bank committed 53,700 breaches of anti-money-laundering laws.