September 19, 2018 / 1:27 AM / 3 months ago

UPDATE 1-National Australia Bank slashes exec pay amid misconduct scandal

(Adds context on misconduct, inquiry into sector, share movement)

Sept 19 (Reuters) - National Australia Bank said on Wednesday it had slashed remuneration for its executive team after a public inquiry uncovered evidence of misconduct at the bank and across the financial sector.

The lender reduced total rewards at current target levels for its chief executive by about 11 percent in fiscal 2018, from 2017. Rewards for its executive leadership team would be reduced by about 15 percent from 2017, the bank said in a statement.

The bank also flagged changes to its performance-based incentives, and said the board could defer or forfeit any variable rewards for executives.

NAB’s top consumer banking executive, Andrew Hagger, announced his resignation this week after the inquiry heard his division had charged fees to hundreds of thousands of retirees for financial advice they never received.

The bank has apologised and promised to pay A$87 million ($63 million) in compensation over the malpractice, which is also subject to an ongoing lawsuit filed by Australia’s corporate regulator.

Shares of NAB were 0.1 percent lower, compared with a 0.3 percent rise in the benchmark index.

$1 = 1.3856 Australian dollars Reporting by Ambar Warrick in Bengaluru; Editing by Stephen Coates

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