Ian Narev to leave CBA

Catherine Livingstone

Catherine Livingstone

Commonwealth Bank of Australia said on Monday its chief executive Ian Narev will retire by June 2018.

Narev, aged 50, has been in the job since the end of 2011, bringing the bank to a record full year profit of nearly $10 billion, an paying out billions in dividends to shareholders during his tenure.

Narev, whose short-term bonus for the past financial year was cut, said last week he didn't intend to resign.

The bank has recently been engulfed in civil charges stemming from alleged breaches of money-laundering and counter-terrorism financing rules.

The fact that no senior executive has lost their job following the scandals, including poor financial planning advice, has become a political issue with the Labor Opposition calling for a Royal Commission.

CBA's chairman Catherine Livingstone said the board had chose to bring forward details of its succession planning to deal with "speculation and questions about his tenure".

The exact timing of Narev's departure will depend on the search for a successor, with the board looking at both internal and external candidates.

She said that succession planning has been an ongoing process for the board, with Mr Narev now in the role for nearly six years, but that the CEO and directors agreed it was important to end speculation about his future. In discussions with Ian we have also agreed it is important for the business that we deal with the speculation and questions about his tenure. Today's statement provides that clarity and will ensure he can continue to focus, as CEO, on successfully managing the business.

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