Commonwealth Bank chief executive officer Ian Narev and fellow group executives have been stripped of short-term bonuses ahead of tomorrow's financial results.
The decision, made by the CBA board in a meeting yesterday, was reached following consideration of the collective accountability of senior management for the overall reputation of the group.
In a statement CBA chairman Catherine Livingstone said the board took into consideration the 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).
"In advance of the presentation of CBA's financial results tomorrow, the board advises that it has decided to reduce to zero the Short-Term Variable Remuneration outcomes for the CEO and Group Executives for the financial year ended 30 June 2017," Livingstone said.
"The board also recognised that it has shared accountability and therefore has decided to reduce non-executive director fees by 20% in the current 2018 financial year."
Livingstone added that chief executive officer Ian Narev retains "the full confidence of the board."
Last year CBA shareholders, angered by a recent slate of scandals including charging customers for advice they had never received, voted down the board's executive pay report, slapping the bank with a "first strike" against its remuneration report.
Under the Corporations Act, if a company receives two consecutive votes of more than 25% against its remuneration report, the board may face a third vote on whether it must stand for re-election.
Over the weekend, Narev said he had no intention to step down, adding that he thinks he is best served to try and fix the bank's problems.
Narev was last year paid $12.3 million, including $1.4 million in short term incentives.
Full details of this years' remuneration outcomes will be disclosed in the board's annual report, due to be released next week.
Source: CBA annual report 2016