Commonwealth Bank CEO to retire by mid 2018

WILLIAM WEST  AFP  Getty Images

WILLIAM WEST AFP Getty Images

It is the third major public-relations scandal Narev, 50, has faced during his nearly six years in the job.

Commonwealth Bank of Australia's Chief Executive Officer Ian Narev will retire by the end of the 2018 financial year as the nation's largest lender seeks to mitigate the fallout from a money-laundering scandal.

"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", she says.

The bank's board of directors last week axed short term bonuses for Narev and his senior executives.

The Commonwealth CEO, along with the other major banks, has been called before a parliamentary committee to face questioning on the culture within Australia's big banks. The exact date of his departure will depend on the outcome of a candidate search, the bank said.

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

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.

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