Commonwealth Bank has promoted retail banking chief Matt Comyn to replace Ian Narev as chief executive and "rebuild trust" at the scandal-hit lender.
Australia's largest lender, which had been looking for a new CEO since Mr Narev announced his retirement in August, interviewed candidates at home and abroad before opting for one of the executives who last year forfeited their short-term bonuses following allegations the bank contravened anti-money laundering and counter-terrorism laws.
Chairman Catherine Livingstone said Mr Comyn, who will take charge on April 9, was best placed to maintain the bank's momentum and strong financial performance.
"In selecting the new CEO, the board considered, very carefully, which candidate would be best suited to manage the unique combination of the bank's commercial and operational priorities," Ms Livingstone said.
"Of immediate concern, the bank currently faces a range of reputational, regulatory and legal issues that have overshadowed what has otherwise been very strong progress and performance."
Mr Narev decided to step down after AUSTRAC alleged the bank breached money-laundering and terrorism-financing laws by failing to provide on-time reports for more than 53,000 transactions.
He led CBA to a series of record profits and boosted shareholder returns by more than 120 per cent in his six-year tenure.
Mr Comyn has led CBA's retail banking unit since 2012 and said the lender's size meant it had to be held to the highest standards.
"By virtue of the position CBA holds in the community we need to equally demonstrate the highest levels of integrity and operational standards to earn stronger levels of trust within the community and regulators," Mr Comyn said after the announcement on Monday.
"The last six months in particular have been very challenging and I am committed to working with the board, the executive team and our wonderful people to rebuild trust in the Commonwealth Bank."
Ms Livingstone would not discuss AUSTRAC's Federal Court case in detail but said Mr Comyn was not solely responsible for any failings in the retail unit.
"We regard this as an organisation-wide matter for which we all take collective responsibility," Ms Livingstone said.
Mr Comyn, who at 42 will be the youngest chief executive at any of the big four banks, will receive fixed remuneration of $2.2 million and be eligible for another $2.2 million in short-term incentives - plus up to $3.96 million in long-term incentives.
That means he could be paid as much as $8.36 million in the 2019 financial year.
Mr Narev received $8.77 million in 2016 and $5.71 million in 2017, when the bank's executives forfeited short-term bonuses over AUSTRAC's allegations the bank failed to report suspicious transactions quickly enough.
Mr Comyn was paid $2.35 million in 2017 and was among those who lost their short-term bonuses.
At 1100 AEDT, CBA shares were up 37 cents, or 0.46 per cent, at $79.02.
