CBA says its Remedial Action Plan, which details CBA’s response to the 35 recommendations of the Prudential Inquiry, provides a detailed program of change outlining how CBA will improve the way it runs its business, manages risk, and works with regulators, including:
- Strengthening governance and oversight;
- Achieving better customer and risk outcomes;
- Building a more accountable, customer-focused, and transparent culture;
- Taking a proactive approach to risk;
- Improving execution and delivering its plan.
CBA says the Remedial Action Plan also provides a comprehensive assurance framework. An independent reviewer will regularly review progress against committed milestones with APRA. CBA will report publicly on its progress against the Remedial Action Plan.
The CBA Board determined that there should be collective and individual accountability for both current and former executives for the Report’s findings, and the poor risk and customer outcomes that have occurred. Accordingly, senior executive remuneration consequences will be more than $60 million, from reductions to variable remuneration and/or partial or full lapsing of outstanding deferred variable remuneration awards. This includes the actions taken by the CBA Board in August 2017 to reduce Non-Executive Director fees, and reduce to zero the short-term variable remuneration for Group Executives for last financial year.