National Australia Bank’s most senior executives will pay a price for the bank’s less than stellar full-year results.
The bank announced to the Australian Securities Exchange (ASX) that the board had determined that the executive leadership team would receive no short-term variable reward and no fixed remuneration increase for the current financial year.
NAB interim group chief executive and chairman-elect, Philip Chronican said the board had increased rigour in assessing performance across customer, risk, people transformation and financial goals.
He said that while underlying business performance for 2019 was solid, the bank had not achieved benchmarks on some financial and non-financial results, including taking into account the impact of substantial provisions for customer remediation.
The bank’s announcement also made clear that a price had been paid by the former chief executive. Andrew Thorburn and the former chair, Ken Henry with Thorburn forfeiting all deferred variable reward potentially worth $21 million and Henry receiving a reduction in fees alongside other members of the board.