Commonwealth Bank executives will be hit in the pocket over the bank's more than 53,000 alleged breaches of anti-money laundering and counter-terrorism financing laws, with chief executive Ian Narev among those losing bonuses for the past financial year.
CBA on Tuesday said its board still had full confidence in Narev but that short-term incentives for the CEO and his group executives will be cut to zero to demonstrate "collective accountability" for what it has said was an IT error.
Narev, who was born in New Zealand and grew up in Auckland, was paid A$1.43 million ($1.54m) in short-term cash bonuses in the previous financial year, with CBA handing out a total $8m to the CEO and 11 executives.
Commonwealth Bank's full-year results for the 12 months to June 30 are due for release on Wednesday, while the remuneration packages will be included in next week's annual report.
"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)," CBA chairman Catherine Livingstone said in a statement to the Australian Securities Exchange.
