'There will be criticism': Matt Comyn's pitch to be boss at CBA revealed
Commonwealth Bank chief executive Matt Comyn promised to rebuild the bank's reputation, overhaul management and handle the pressure-cooker environment of the royal commission in a detailed pitch for the top job released by the royal commission.
Commonwealth Bank of Australia CEO Matt Comyn.Credit:JOEL CARRETT
The inquiry into banking misconduct on Friday published a confidential New Year's Day email from Mr Comyn, who was then running the retail arm of the bank, to chairman Catherine Livingstone.
In it he sets out his "reflections" on key issues he had discussed with Ms Livingstone three days before, which would arise if he were to get the top job.
In the email, which was sent on January 1 this year, Mr Comyn outlined: what he thought would come up at the royal commission; his plan for establishing a "renewed" and "energised" executive team; how he would handle the intense pressure and scrutiny that would come with being CEO; and his views on the CBA board.
Mr Comyn has worked for the country's biggest bank for almost two decades and was appointed chief executive in late January.
He told Ms Livingstone in his pitch that he understood there would no doubt be "criticism" if he were appointed to the top job. Some observers had suggested an external candidate would be a better option to solve the bank's cultural issues.
He even suggested when might be a good time to announce the appointment: about a week before its half-year results - which is what the bank ended up doing.
"It was clear from our recent discussions, that the board is understandably weighing the public reaction to the
potential appointment of me as CEO," Mr Comyn wrote.
"I understand that there will no doubt be criticism, but I also believe that there will be strength from the rigour of the process that the Board has undertaken.
I understand that there will no doubt be criticism, but I also believe that there will be strength from the rigour of the process that the Board has undertaken
Matt Comyn's letter to Catherine Livingstone
"Having reflected on our discussion, my instinct is that an announcement around a week prior to half-year results would allow a week of reaction, with the expected strong result to then refocus on our strong performance, with the Retail Bank again underpinning the result."
Mr Comyn also told Ms Livingstone there would be a "detailed plan" to manage the media and investor reaction after the announcement, and he would aim to make it clear the bank had a "change agenda."
"Building an effective and transparent relationship with the Board to rebuild trust in CBA together is my highest priority, and is essential to being able to get through the next few years," he said.
Since he formally became chief executive in April, he has announced a series of asset sales, including selling off most of its wealth management businesses, as part of a plan to simplify the bank, and re-ordered its management ranks.
On the royal commission, Mr Comyn outlined various possible topics that may come up, including "questions regarding the appropriateness of lending standards pre 2012," and he said there was a risk of CBA paying compensation over its term deposit pricing from before 2011.
Mr Comyn correctly anticipated the commission might look at "issues that we have been aware of and debated, and for one reason or another, have not acted on," such as consumer credit insurance, which he was grilled about this week.
Mr Comyn's email also touched on how he planned to handle the pressure of leading a bank during the next few years, he said would be "particularly challenging."
"The experience of the last six months has given me confidence that I can work through difficult issues, keep things in perspective, support my family, energise my team, and scale my leadership to get things done across the organisation," he wrote.
I would ensure that I leave substantial free time in my diary to deal with unexpected issues and to remain fit and healthy so that I am in the best possible shape to deal with the stresses of the role.
Matt Comyn in his letter
"I would ensure that I leave substantial free time in my diary to deal with unexpected issues and to remain fit and healthy so that I am in the best possible shape to deal with the stresses of the role."
Another issue dealt with in his email was his perspective on the board, and Mr Comyn told Ms Livingstone he believed CBA directors had a "very tough job in the current context," promising transparency.
"As CEO, I would absolutely see it as my role to be provide transparency and the right level of detail, and to bring issues to the board's attention that you need to be across with my recommended course of action for discussion and debate," he wrote.
"It will never be up to the board to follow through on open actions and issues."
The email was tendered as evidence at the royal commission on Monday this week, when Mr Comyn told the commission it followed a three-hour meeting with Ms Livingstone on the 29th of December.
Mr Comyn had just arrived in Utah when he sent the note, which also said: "As per our discussion, I will make sure that I ski even more carefully than usual, which means I may not be able to keep up with my daughter in the moguls!"
Ms Livingstone this week heaped praise on Mr Comyn, saying the "most telling thing" for her was that after the bank's anti-money laundering breaches last year, Mr Comyn had apologised to the board at a time when other executives were blaming others, or were not informed.
Questioned about the message it sent to for the board to appoint an insider such as Mr Comyn, Ms Livingstone said the "easy answer" for the board would have been to appoint an external candidate, before adding: "To find an external person globally at that level who has not been involved in some regulatory event is almost impossible. And I don’t mean that as a joke."
Clancy Yeates writes on business specialising in financial services. Clancy is based in our Sydney newsroom.
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