EXECUTIVES – SALARIES

APRA targets banker bonuses

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: W1 & W2 : 5-Apr-18

A review of remuneration in the banking, insurance and superannuation industry shows that senior executives are rarely penalised financially for poor risk management practices or misconduct among staff within their purview. Wayne Byers, the chairman of the Australian Prudential Regulation Authority – which undertook the review – says bank executives should be held more accountable, calling for their bonuses to be deferred or forgone. Frank Mirenzi of Moody’s Investors Service notes that many countries have cracked down on executive pay in the banking sector in the wake of the global financial crisis.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC

Woodside rejigs pay to drive discipline

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Original article by Samantha Bailey
The Australian – Page: 20 : 20-Mar-18

Woodside Petroleum CEO Peter Coleman was paid a total of $A10.3m in 2017, including almost $A4m in incentives. Some two-thirds of Coleman’s short-term incentives were paid in cash, but his future cash bonuses will be restricted to 12.5 per cent under Woodside’s revised executive incentive structure. Other key executives will also be restricted to cash bonuses of 12.5 per cent. The changes follow a review of Woodside’s incentive plan in 2017.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL

Lib MP growls over layer of BEAR red tape

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 6-Feb-18

The Greens will seek amendments to the Federal Government’s Banking Executive Accountability Regime in the Senate, after the legislation was passed by the lower house on 5 February. Liberal MP Nicolle Flint opposed the BEAR regime, arguing that it will further increase the compliance burden for the financial sector, noting that it has been subject to a spate of new rules and regulations in recent years. The BEAR regime, which is slated to take effect in July, has the support of the Australian Labor Party.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

South32 execs pay the price for lower output

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 15-Sep-17

South32’s failure to achieve its target of an 0.9 per cent return on invested capital in 2016-17 has in turn resulted in lower short-term incentive payments for its key executives. CEO Graham Kerr was paid just 55.3 per cent of his maximum potential short-term incentives, although his total remuneration for the financial year rose from $A4.2m to $A5m. South32 does not intend to make any changes to its executive remuneration policy in 2017-18.

CORPORATES
SOUTH32 LIMITED – ASX S32

Directors slam bank exec rules

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 2 : 17-Aug-17

The Australian Institute of Company Directors has concerns about the Federal Government’s proposed Banking Executive Accountability Regime. The AICD’s submission to the Government warns that rather than increasing the accountability of financial industry executives, the reforms could in fact lead to greater risk aversion in the sector. The AICD is also concerned about the increased powers of the Australian Prudential Regulation Authority under the reforms, particularly with regard to executive remuneration.

CORPORATES
AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, UNIVERSITY OF SYDNEY, BANK OF MELBOURNE LIMITED, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED

Livingstone ousts CEO Narev, cuts pay, puts execs on notice

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Original article by James Frost
The Australian Financial Review – Page: 1 & 8 : 15-Aug-17

The Commonwealth Bank of Australia’s board has reiterated its intention to take further action on cuts and changes to executive pay and incentives in the wake of the money laundering crisis. Its actions come as it announced that CEO Ian Narev will retire by 30 June 2018, with his successor most likely to be an external appointment. Louise Davidson, the CEO of the Australian Council of Superannuation Investors, says there are clearly some problems with the CBA’s culture, noting its recent problems involving financial planning and life insurance.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIANSUPER PTY LTD, AUSBIL INVESTMENT MANAGEMENT LIMITED, OWNERSHIP MATTERS PTY LTD, UNISUPER LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

CBA chiefs facing more salary pain

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Original article by James Frost
The Australian Financial Review – Page: 6 : 14-Aug-17

The Commonwealth Bank of Australia could announce further cuts to executive pay and incentives in the wake of the money laundering crisis. Its actions could extend to executives who are no longer with the bank but were working for it when the suspicious ATM transactions that led to AUSTRAC’s actions occurred. Alden Toevs, the CBA’s chief risk officer from 2008 to 2016, could potentially lose his rights to CBA shares, as could former chief financial officer David Craig.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Morrison warns all options open

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Original article by Andrew Tillett, James Eyers, Sally Patten, James Frost
The Australian Financial Review – Page: 1 & 8 : 9-Aug-17

Proxy advisers and institutional investors have welcomed the Commonwealth Bank of Australia’s decision to reduce executives’ short-term bonuses in the wake of the money-laundering scandal. However, they argue that CBA must take further action, while federal Treasurer Scott Morrison has told CBA chair Catherine Livingstone that the Government will look at a range of sanctions. The CBA scandal has resulted in increased pressure for the Government to hold a royal commission into banks, but Prime Minister Malcolm Turnbull has warned that doing so could jeopardise AUSTRAC’s case against CBA.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CGI GLASS LEWIS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, UNISUPER LIMITED, OWNERSHIP MATTERS PTY LTD, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Banks growl at BEAR necessities

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 26 : 2-Aug-17

Australian banks have expressed concern about the Federal Government’s proposed Banking Executive Accountability Regime. Criticisms include the lack of sufficient industry consultation and the fact that while non-bank financial services providers such as insurers will be excluded from the regime, it will apply to such businesses that are owned by banks. The Australian Bankers’ Association has also questioned the length of consultation period, although it is generally supportive of the push to increase the accountability of bank executives.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, CUSTOMER OWNED BANKING ASSOCIATION

‘Dangerous’ bank levy may have domino effect: Bligh

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Original article by David Crowe, Andrew White
The Australian – Page: 17 & 21 : 27-Jul-17

Australian Bankers’ Association CEO Anna Bligh has expressed concern that more state governments could implement their own version of the federal levy on banks. The levy is intended to boost government revenue by $A6.2bn, but Bligh has told the National Press Club that this impost could double if all states introduced their own levy. Bligh also supports Peter Costello’s call for banking industry executives to justify their high salaries, while she has questioned whether a royal commission into banks – as advocated by Labor – is appropriate and necessary.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, NATIONAL PRESS CLUB (AUSTRALIA), SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FINANCE