NAB plans to cut exec pay following criticisms over best practice

National Australia Bank (NAB) is cutting executive pay and has introduced a new salary framework to tighten its “customer focus” following a country-wide misconduct inquiry in the banking sector – the Financial Times reports.

Australia’s fourth-largest bank according to its market capitalisation rankings is replacing short-term and long-term bonuses for executives with a single reward-based performance system.

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Some 40% of this cash bonus will be paid at the end of the financial year with the outstanding payment paid in shares that will be deferred for at least four years.

Under the new framework, NAB’s CEO Andrew Thorburn will have his 2018 total target pay slashed by 11%, while overall executive pay will be cut by 15%, the bank confirmed on Wednesday.