Banker pay a ‘work in progress’ five years on from Hayne inquiry

The country’s most senior prudential regulator says bank executive remuneration is still too aligned to financial outcomes, five years after the Hayne royal commission identified this as a key issue creating poor decision-making in the sector.

Attempts to improve risk culture and accountability, and reduce profit-based incentives in the banks, remain a “work in progress”, Australian Prudential Regulation Authority chairman John Lonsdale said on the five-year anniversary of Kenneth Hayne’s report being delivered to government.