Al­le­ga­tions cost CBA heads big bonus cuts

Townsville Bulletin - - NEWS - STU­ART CONDIE

COM­MON­WEALTH Ba n k ex­ec­u­tives will be hit in the pocket over the bank’s al­leged breaches of anti- money laun­der­ing and counter- ter­ror­ism fi­nanc­ing laws, with chief ex­ec­u­tive Ian Narev and oth­ers los­ing their bonuses.

CBA said its board still has full con­fi­dence in Mr Narev but short- term in­cen­tives for the CEO and other ex­ec­u­tives will be cut to zero to demon­strate “col­lec­tive ac­count­abil­ity” for what it has said was an IT er­ror. Mr Narev was paid $ 1.43 mil­lion in short- term cash bonuses in the 2015/ 16 fi­nan­cial year, when CBA handed out a to­tal of $ 8 mil­lion in short- term cash bonuses to the CEO and 11 ex­ec­u­tives.

Fees for CBA’s non- ex­ec­u­tive di­rec­tors are also to be cut by 20 per cent in the 2017/ 18 fi­nan­cial year in recog­ni­tion of the board’s shared ac­count­abil­ity.

CBA is ex­pected to re­port a near-$ 10 bil­lion profit when it re­leases full- year re­sults to­day.

CBA chair­man Cather­ine Liv­ing­stone said the board had con­sid­ered “risk and rep­u­ta­tion mat­ters im­pact­ing the group” in its de­ci­sion.

“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 ( AUS­TRAC),” Ms Liv­ing­stone said.

AUS­TRAC al­leges CBA failed to pro­vide on- time re­ports of 53,506 cash trans­ac­tions of $ 10,000 or more, to­talling $ 625 mil­lion, that were made through its In­tel­li­gent De­posit Ma­chines ( IDMs) from Novem­ber, 2012 to Septem­ber, 2015.

CBA shares were down 1 per cent at $ 80.73 yes­ter­day.

BIG PLAN: An aerial view of the planned neigh­bour­hood cen­tre and district park in Lendlease's $ 4.7 bil­lion El­liot Springs project 15km south of Townsville.

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