Walking away: CBA CEO Ian Narev. Credit:Peter Braig ​CBA's annual report, published on Monday also showed Mr Narev's remuneration in the last financial year was $5.5 million, down from $12.3 million last year, after the board cut bonuses in response to the scandal. Ms Livingstone did not link the announcement about Mr Narev's retirement to Austrac's allegations, saying there had been speculation about Mr Narev's tenure for "some time" and the bank was seeking to provide clarity. However, she did acknowledge this speculation had "intensified" recently. "It certainly intensified over the last little while which is we thought that the clarity and transparency that we'd achieved through this announcement will enable everyone to get back and focus on the job at hand," she said in a press conference on Monday.

"As you would expect, we will undertake a very thorough process which will include both internal and external candidates." Ms Livingstone, who last week cut short-term executive bonuses to zero in response to the Austrac allegations, had last week said Mr Narev had the "full confidence" of the board. When asked what had changed since then, Ms Livingstone maintained Mr Narev still had the board's support, and that it was looking at succession before the Austrac allegations surfaced. "Nothing has changed, we have full confidence in Ian as CEO. As I've said, the ongoing CEO succession process is something which you would expect to be happening, given Ian's at this point in his tenure," Ms Livingstone said. Ms Livingstone, who has been chairwoman of CBA since January, said the board would be looking for an executive with a "very strong moral compass" to lead the bank.

"In these roles, as you know, the right and wrong are clear but the judgment calls that have to be made along the way can be very challenging, and we need someone with a very strong sense of that moral compass," she said. Meanwhile, CBA's annual report showed the bonus that Mr Narev missed out on could have been worth several million dollars, while five other senior executives also had their bonuses cut to zero. "Executive performance against financial and non-financial measures was strong for FY-17, however, remuneration outcomes demonstrate overriding consideration of the significant damage caused to the group's trust and reputation as a result of risk matters, most notably the recent civil penalty proceedings initiated by Austrac," the report said. As well as cutting bonuses, Ms Livingstone has set up a high-powered board committee to oversee the bank's response to the Austrac allegations. Ms Livingstone also faced repeated questions about when the board became aware Austrac was investigating the bank, after the corporate regulator on Friday expressed frustration it had not been warned about the action.

Loading Ms Livingstone said the board was not aware of the legal action until it was filed, and reiterated the bank had complied with its duty to disclose material news to investors. "We have issues with regulators at all times and form a view about the extent to which they are material and require disclosure," she said.