Millions slashed from CBA chief Ian Narev’s pay

Not only was CBA boss Ian Narev’s 2017 pay slashed 55pc after the Austrac scandal, as his missed out on $4.83m of bonus payments.

Commonwealth Bank CEO Ian Narev presents the 2017 full year profit results. Pic: James Croucher

Commonwealth Bank of Australia chief executive Ian Narev’s remuneration was slashed by 55 per cent over the past year, after he lost short-term bonus payments in the wake of the Austrac money laundering scandal.

Mr Narev, who will retire next year, was also forced to give up $4.83 million from his paycheck this year, as he missed out on a series of long-term bonus payments.

The bank’s annual report released this morning showed Mr Narev was paid $5.506 million in the past 2017 financial year. This was down from an adjusted $12.3 million in 2016.

At the same time the annual report showed none of CBA’s executive ranks were paid short term bonus in the 2017 financial year, with nearly $14 million stripped from bonus payments.

“The board recognises the significant damage caused to the group’s trust and reputation as a risk matters, most notably the recent civil penalty proceedings initiated by Austrac,” CBA’s annual report said.

“Accordingly, the short term variable remuneration outcomes for CEO and group executives were adjusted downwards to zero for FY17,” it said.

Elsewhere, former chief financial officer David Craig, who retired at the end of June, missed out on up to $2.66 million in bonus payments from his 2017 paycheck.

CBA’s directors also had their annual fees cut by 20 per cent, the report showed.

CBA Executive Revised Remuneration

Last week CBA chair Catherine Livingstone moved to take control of the scandal, outlining plans to slash to zero the 2017 bonuses for Mr Narev and the entire senior executive ranks in the wake of the money-laundering scandal.

In the annual report CBA said it was not possible to reliably estimate the possible financial impact on the group of allegations the bank breached money-laundering laws.

While Mr Narev’s Big Four rivals haven’t signed off their 2017 financial year, NAB chief executive Andrew Thorburn was paid $6.71 million in 2016, Westpac’s Mr Hartzer was on $6.78 million and ANZ’s Shayne Elliot was paid $5.07 million during 2016.