The beleaguered boss of the Australian bank at the center of a money-laundering scandal first had his bonus cut to zero. Now, the bank's board has addressed his future.
Sydney-based Commonwealth Bank of Australia has been roiled by a major money-laundering scandal, which saw CEO Ian Narev's bonus cut to zero.
On Monday, CBA said it will ease Narev out by next summer.
CBA chair Catherine Livingstone termed it a «retirement,» with Narev's exact departure date dependent on how quickly the bank can replace him.
Speculation Over Tenur
«In discussions with Ian we have also agreed it is important for the business that we deal with the speculation and questions about his tenure,» Livingstone said in a statement.
Speculation that Narev might not survive the money-laundering scandal was rife, with the CEO himself addressing it last week.
CBA has argued that the laundering violations arose after technology linked to automatic deposit machines amplified one error into thousands of lapses.
No Deliberate Wrong-Doing
The bank's board said last week it had no reason to believe that anyone at the bank deliberately acted unethically, or to enrich themselves.
CBA said by disclosing Narev's planned departure, it is seeking to head off speculation in order for the CEO to manage the business.
