CBA apologises again as CEO forgoes bonus

CBA's chief executive and chair have apologised to "all of [our] stakeholders" for yesterday's APRA report that found a litany of failures within the bank's leadership.

Australia's largest bank entered an enforceable undertaking with APRA yesterday, pledging to implement 35 changes to fix a "reactive and complacent" leadership culture characterised by "overly complex and bureaucratic decision-making" and a remuneration structure that had no "sting".

CBA chief executive Matt Comyn said during a conference call yesterday that the bank had "let down our customers, let down our regulators, and as management let down our people".

Mr Comyn revealed that he told CBA chair Catherine Livingstone shortly after his appointment that he would not accept a short-term incentive payment for 2018.


The board was told about Mr Comyn's decision to forgo his bonus in March, and it was made public yesterday as CBA sought to defuse the negative publicity surrounding the APRA report.

Treasurer Scott Morrison made it clear yesterday that he expects more senior leaders at CBA to be sacked, but Mr Comyn made no commitment to remove offending staff yesterday.

"There is no silver bullet for us, but this is a first step to shift our culture to be more transparent, more accountable and more customer focused," Mr Comyn said.

CBA is undergoing a 'board renewal' program under chair Catherine Livingstone, with seven non-executive directors having left under her tenure.

The bank will be closely monitored by APRA and ASIC to ensure the 35 recommendations in the report are implemented in full.

CBA apologises again as CEO forgoes bonus
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.