Commonwealth Bank
(ASX:CBA) chairman John Schubert has warned new rules cutting executive pay could drive top talent out of the major banks and undermine moves by the prudential regulator, APRA, to discourage excessive risk-taking.
The financial crisis has seen a storm of protests erupt in the media and among shareholders, both in Australia and internationally, over multi-million dollar bonuses paid to executives.
To date, both APRA and most recently, the Productivity Commission, have recommended new rules on remuneration for executives, which the federal government is still considering.
CBA’s 2009 net profit was $4.7 billion.
