Under fire Commonwealth Bank of Australia named its retail banking head as new chief executive.
Matt Comyn will take on the role of chief executive officer of Commonwealth Bank of Australia from April 9, 2018, replacing Ian Narev, who announced his retirement last year.
Comyn was selected for the top role after a global search and interview process, bank chair Catherine Livingstone said in a press release. Among his first challenges will be restoring the reputation of his scandal prone bank.
Regulatory and Reputation Issues
Commonwealth Bank of Australia admitted to a significant number of the breaches of anti-money laundering and counter-terrorism financing laws last year and is the subject of an ongoing inquiry.
The bank was served with an amended statement of claim in December 2017 alleging further transgressions of Australia’s anti-money laundering and counter-terrorism financing legislation, and is also one of the big four banks about to face a year long royal commission into misconduct in the country's banking and financial services sector.
Risk and Reward
Comyn joined Commonwealth Bank of Australia in 1999, and held positions in the institutional bank before being named head of local business banking. In 2012, he was appointed head of retail banking services, the bank’s largest division.
In taking on the chief executive position Comyn will receive fixed remuneration of A$2.2 million, will be eligible for another A$2.2 million in short term incentives or bonuses and a further A$3.9 million on long term incentives equivalent to 180 percent of his fixed remuneration. He will also be subject to a 12 month non-compete clause.
