Commonwealth Bank boss Matt Comyn’s $9m payday under fire as lender reveals 147,000 get payment relief

Commonwealth Bank boss Matt Comyn has warned Australia’s economy is slowing and inflation remains stubbornly high, revealing the banking giant arranged payment relief 147,000 times for struggling customers while banking a record $11 billion profit.

Mr Comyn acknowledged the strain on household budgets at Wednesday’s annual general meeting, where his $9.1 million payday and the bank’s treatment of staff also came under scrutiny.

“For some households it has become harder, not easier, as the year has gone on,” he said.

“Looking ahead, growth is slowing and inflation remains too high, and it will take time for higher interest rates to bring inflation back into the target range.”

CBA’s annual cash profit climbed 7.1 per cent despite fierce competition for mortgages and deposits.

But CBA shares held by 14 million Australians shed almost 11 per cent over the financial year, even as Mr Comyn’s actual remuneration jumped 30 per cent to $9.14m.

Chair Paul O’Malley said the bank returned $8.3b to shareholders, including a fully franked annual dividend of $5.05 a share.

Influential proxy adviser Institutional Shareholder Services questioned why executives received bonuses for their core “day job” responsibilities, with half their short-term incentives tied to largely undisclosed targets.

The adviser also criticised CBA for failing to disclose how much three senior executives lost in bonuses over compliance and risk-management failures.

“The company has poor and absent disclosure of the consequence management process,” ISS said, arguing investors could not judge the penalties.

CBA recorded 1827 substantiated instances of misconduct last financial year, including 178 resulting in termination, down from 1959 instances and 184 terminations the previous year.

Mr Comyn received 91.7 per cent of his maximum short-term bonus without a risk-related reduction, including a 96 per cent score for people and leadership.

The Australian Shareholders’ Association has questioned that leadership score, seeking a clearer explanation of how it reflects employee feedback and workforce changes.

It comes as the bank struck a deal with the Finance Sector Union on Tuesday after months of tense pay negotiations, covering about 35,000 employees.

The proposed three-year deal offers raises of up to 13 per cent for the lowest-paid staff and establishes an artificial intelligence committee to examine the technology’s impact on workers. Those earning more than $165,000 would receive a 5 per cent increase.

The agreement follows a separate union dispute alleging CBA used “sham redundancies” to cut Australian jobs while recruiting in India. The allegations have been taken to the Fair Work Commission.

Mr Comyn said employee engagement had reached 85 per cent, its highest under the bank’s current measurement system, but acknowledged technology would reshape jobs.

“Some tasks will change, some roles will evolve, and new roles will emerge,” he said.

CBA has committed $90m over three years to help staff develop new skills as it expands its use of AI.

Mr Comyn also said CBA grew at or above the broader market across all five major lending and deposit categories, a feat he claimed no major Australian bank had achieved in 15 years.

“Importantly, it was not achieved by sacrificing margin,” he said.

Shareholders will vote on Mr Comyn’s remuneration report and another $3.99m in proposed long-term equity awards, with both ISS and the Australian Shareholders’ Association recommending support despite their concerns about the bonus arrangements.