Commonwealth Bank chief executive Ian Narev's pay fell by 55 per cent after Australia's largest bank overhauled executive remuneration in response to a first strike by shareholders at last year's annual general meeting.
CBA's annual report, released on Monday, showed that Mr Narev received total remuneration of $5.5 million in the 12 months to June 30, down from $12.3 million a year earlier
Short-term bonuses for Mr Narev and other executives were slashed following allegations by regulator AUSTRAC that CBA breached money-laundering and terrorism-financing laws.
"Although the group has delivered strong results for shareholders in FY17, the board recognises the significant damage caused to the group's trust and reputation," remuneration committee chairman Sir David Higgins wrote to shareholders.
Sir David said the change in approach was significant and a direct response to the shareholder vote.
CBA had been facing the possibility of a second strike and a board spill at this year's AGM if it failed to address shareholder anger at the size of executive bonuses.
Nearly 49 per cent of votes received at the 2016 meeting in Perth were cast against accepting the company's remuneration report, well above the 25 per cent that constitutes a so-called 'strike'.
Proxy advisors ISS and Ownership Matters had reportedly recommended their institutional clients reject the remuneration report because of inconsistencies between executive bonuses and scandals involving CBA's Wealth Management and CommInsure businesses.
"The remuneration report for the 2016 financial year was viewed as complex and lacking transparency, making it difficult to navigate and understand details of the group's remuneration framework and the basis for executive remuneration outcomes," Sir David said.
"The board has undertaken a comprehensive review of our executive remuneration strategy, framework and governance, which has responded to these concerns in full."
CBA's 2017 annual general meeting will be held on November 16 in Sydney.
