NAB has emailed bankers on Thursday, informing them of the change, meaning they can earn bigger bonuses linked to writing new business.
Already a subscriber?National Australia Bank emailed bankers this morning to tell them it will increase the bonus cap for mortgage lenders from 50 per cent of their base pay to 80 per cent from October 1.
It is the third major bank to consider the change after Commonwealth Bank ditched the caps – a holdover from the Australian Banking Association-commissioned Sedgwick review in 2017 – as of July 31. Westpac boss Peter King said he was “considering our approach to ensure we remain competitive” soon after, elevating the pressure on NAB and ANZ to make similar moves or risk losing their lenders to competitors.
It is understood that NAB will implement strict compliance and customer outcome hurdles attached to its bonuses to prevent adverse borrower outcomes., NAB executive Andy Kerr said the bank would share more details in September.Staff were told the home lending specialist incentive plan will be retooled from October 1, increasing the maximum variable reward to 80 per cent of an employee’s base salary from 50 per cent.
“Putting the interests of our customers first as responsible lenders is paramount and we will have robust compliance and conduct measures in place to ensure this,” he said. “These measures will be considered before factoring in customer service, leadership behaviour and commercial outcomes.”brokerages“We made it very clear to them, we think this very disturbing, very disappointing, and I think the phrase backsliding is not too far from what happened here,”
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