CBA joins bank teller incentives overhaul

The Australian 12:00am October 14, 2017

Michael Roddan

Commonwealth Bank surprised the other major lenders when it was the first to dump ATM fees, but the bank has trailed its rivals in scrapping financial incentive payments for branch tellers.

CBA yesterday announced the move to pay its branch staff based on customer service outcomes, while blocking bonuses for tellers, in line with recommendations made in Stephen Sedgwick’s review of remuneration in the banking system.

Westpac was the first big bank to remove product-related incentives for its 2000 tellers across the branch network, announcing the move in January.

CBA’s move will affect about 2000 bank tellers, and comes as the lender fights a public relations battle to restore its image after a string of scandals, including the latest allegations it breached anti-money laundering laws more than 53,000 times.

It also comes ahead of CBA chief executive Ian Narev’s appearance next Friday at the twice-yearly parliamentary grilling for the government’s major bank review. This week ANZ chief executive Shayne Elliott and Westpac boss Brian Hartzer faced questioning, and financial incentive payments were a key focus of the hearing.

“This change will reward our tellers for continuing to provide superior service to the millions of customers we serve around the country,” CBA executive general manager Angus Sullivan said.

The overhaul has been backdated to the start of the financial year, and has also been extended to Bankwest tellers. Bankwest is wholly owned by CBA.

While the bank’s front line staff have had their remuneration shaken up, CBA last month overhauled the long-term pay structures for its most senior executives. Trust and reputation will be incorporated into the bank’s long-term incentive models, which, along with employee engagement, will now account for 25 per cent of long-term variable remuneration for senior executives.