Matt Comyn to serve out a decade as the boss of Australia’s biggest bank

Commonwealth Bank chair Paul O’Malley has put to bed any talk of chief executive Matt Comyn stepping down, telling shareholders that he will remain in the job for another three years.

The extension means Comyn will be at the helm of Australia’s largest bank until at least 2028, marking a decade-long tenure as chief executive.

Comyn, a long-time CBA banker, is by far the longest-serving CEO among the bosses of Australia’s big four, after being appointed to the job when the bank was reeling from a bombshell money laundering compliance lawsuit and a run of scandals in its wealth management operations.

CBA chief executive Matt Comyn is likely to remain the boss of the bank until at least 2028.Credit: Oscar Colman

Addressing shareholders at the bank’s annual meeting on Wednesday, O’Malley said he intended to stand for his final three-year term as chair, with the support of the board. He added that the next chair after him would appoint the successor to Comyn, who has been the chief executive of CBA since April 2018.

“One of the board’s key roles is appointing the CEO and ensuring appropriate succession plans. We have been pleased with the performance of Matt as CEO,” O’Malley said at the meeting in Brisbane.

“As I mentioned, I will stand for re-election today for my final three-year term. Our intention and expectation is that the decision as to the appointment of the next CEO will be made by the board, led by my successor as chair.”

UBS analyst John Storey said Comyn had performed well as boss of CBA, helping to stabilise the banking giant after the 2018 banking royal commission and AUSTRAC’s 2017 lawsuit.

“I think it’s a good thing. I think there were some question marks potentially around CEO succession in the past,” Storey said.

CBA had a “deep bench” of potential candidates to ultimately replace Comyn, Storey said, and he believed one of the leading candidates was the group executive in charge of retail banking, Angus Sullivan.

Principal at fund manager Alphinity, Andrew Martin, said O’Malley’s comments on Comyn’s tenure were a positive for the company, though they were probably not surprising to those inside CBA. “He’s done a great job, the business is going well. Stability is a good thing,” he said.

Aside from Sullivan, who leads the largest division in CBA, other potential candidates to ultimately replace Comyn include business banking boss Mike Vacy-Lyle and finance chief Alan Docherty.

CBA has long been regarded as the technology leader among the big four, and in his speech to shareholders on Wednesday, Comyn highlighted the bank’s investment in artificial intelligence, including hiring 2000 engineers last financial year and its training of staff.

However, the bank’s leaders were also questioned over its decision in July to cut 45 jobs and replace them with AI systems – a move later reversed.

Kathryn Sullivan, a CBA employee who was one of 45 customer service employees whose roles were made redundant in July, said she had worked at the bank for 25 years. She asked what measures the bank had to prevent current staff from losing their jobs to AI.

Kathryn Sullivan was among the 45 workers CBA replaced with AI.Credit: Alex Ellinghausen

“We made a mistake,” O’Malley said in response.

“We didn’t adequately consider all the relevant business considerations. And I think that’s been communicated.”

Under Comyn, CBA has been the dominant bank of Australia’s big four, delivering profit growth over most of the past five years despite growing competition in home loans from the likes of Macquarie Group.

CBA’s share price has been on a tear in recent years, sparking debate over whether it is overvalued. CBA shares have gained 20 per cent in the past year, as investors have flocked to the bank against a volatile global backdrop.

In the lead-up to Wednesday’s AGM, the Australian Shareholders’ Association highlighted the importance of succession planning at CBA, while also praising Comyn’s performance in the top job. The ASA said Comyn was of “key importance” to the bank and that he was one of the country’s top business leaders.

“He is yet to turn 50 and has publicly stated he has no plans for retirement but nevertheless after seven years as CEO, succession planning is of vital interest to all shareholders,” the ASA’s pre-AGM note said.

With AAP

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