High Noon At CommBank
Certainly a big day! And the Annus Hornbills, as the Queen once said, comes to an end for the Commonwealth Bank (ASX:CBA) tomorrow when the board fronts shareholders at its Annual general meeting.
Now to set the scene for you, the bank is facing civil legal action from the government agency, AUSTRAC, that it breached anti-money laundering rules on 53,000 separate occasions.
A potential fine could run into hundreds of millions, or even billions of dollars.
The CommBank exited its life insurance division after scandals in its CommInsure business. There is even a suggestion that it will exit wealth management as well after the horrendous financial planning scandal.
The CEO, Ian Narev, has already said he is leaving next year. The head of the Wealth division, Annabelle Springs, is also going.
The new CEO is yet to be appointed. On the board of directors, Harrison Young and Launa Inman. Andrew Mohl, the former successful boss of the AMP will go next year.
There’s a class action underway by Maurice Blackburn and a 6 month investigation into the bank and tis government by the bank regulator APRA. And with our fractured Parliament, there’s a chance within weeks Crossbenchers and Labor will try to launch a Royal Commission into our Banks.
So nothing to see at Australia’s largest company, Australia’s largest bank.
Oh! There is one thing – if shareholders vote against the executive remuneration report tomorrow, the whole board has to resign and put themselves up fro re-election.
That’s because shareholders voted against the report last year, two strikes in a row and the board has to roll.
Add to that, Bill Watson, boss of the $3 billion super fund, First Super, is actively lobbying other big super bosses to vote against the remuneration report, to spill the board.
Will he be successful? Well – that’s questionable.
Major Proxy group to recommend how big shareholders should vote are siding with the board right now. But tonight will be sleepless for most at the Commonwealth Bank.
Overnight, the Dow Jones down 42 points.
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Money Minute – November 15 2017 High Noon At CommBank