Andrew Thorburn, the CEO of the NAB, came under intense questioning over the fact that none of his senior executives had been sacked when 43 financial planners had been dismissed for misconduct.
He confirmed to the House of Representatives economics committee that no senior executives had lost a job but there had been “some” reduction of incentive payments.
NAB has paid out a combined $15 million to 750 customers who got bad advice from financial planners at the bank.
Deputy committee chair Matt Thistlethwaite asked whether any other staff associated with those planners were sacked as well.
“Well, the planners were the culpable parties, really,” Thorburn said.
“We have had some other consequences for other people in the bank but I think the planners were the ones who were the active personal participants in these wrong behaviours and activities.”
“I think we have significantly improved our governance and controls and consequences,” Thorburn said.
Greens MP Adam Bandt questioned why the same people were still running the banks after the scandals.
“We’ve seen scandal after scandal that only come to light when whistleblowers raise it and we find out the same people are still in charge,” he said.
“Do you understand why people aren’t satisfied by that and continue to push for a royal commission?”
Thorburn replied: “I can understand why you say that and why that is raised.”
He acknowledged the “emotion” in Bandt’s voice.
“When I have met with some of the clients we have not done well for, I am ashamed,” Thorburn said.
“But overall we have a lot of our people doing the right thing and I think that’s good for Australians.”