Lengthy terms for chief executive are usually frowned upon, with the best governance standards putting a cap on terms at seven years and a stretch limit of ten years. The average in Australia is about 6 years.
But Comyn began his job at the top of CBA when he was in his early forties, which is highly unusual, and in theory lengthens the governance runway. He was also elevated to the job in a difficult period in the midst of the costly and controversial AUSTRAC money laundering scandal that had rocked the bank.
At the time critics claimed that as a senior executive, Comyn was part of the problem and that fresh blood was needed for culture change.
CBA chairman Paul O’Malley (left) and chief executive Matt Comyn at the AGM in Brisbane.Credit: Glenn Campbell
It was a brave punt by then-chairman Catherine Livingstone to ignore the noise and back who she considered the best applicant to replace the then-CBA chief executive Ian Narev, who was a notable casualty of the AUSTRAC scandal.
Comyn has come good on the confidence shown in him by Livingstone, and proven his detractors wrong. CBA has outdone its peers on almost every measure to a point where it stands in a near unassailable position.
It posted a record cash profit of $10.25 billion in the year to June 30 and, under Comyn, maximised CBA’s lead in technology, which was established well before he took over as chief executive.
By placing a line under Comyn’s tenure, CBA’s serious executives may now have to contend with their very own version of Hunger Games to establish who takes over.
There are currently three people in contention – the head of business banking Mike Vacy-Lyle, retail chief Angus Sullivan and chief financial officer Alan Docherty. So, there’s enough bench strength to negate the need for the board to look for an outsider.
But three years is a long time, and there is a possibility that not all three will be happy to cool their heels for that long. Having said that, the prospect of leading CBA – the most influential corporate gig in the country, with a hefty salary – would be especially alluring for any banker.
And what of Comyn? If he leaves CBA at 53 or so, he will be young enough to tackle another executive challenge. And the most logical career move would be to run a larger offshore bank. He has three years to get his resume ready.
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