Comment: Bonus pain falls wrong way at NAB
The miasma of NAB's global banking portfolio is getting a tidy-up, and that is certainly to be applauded, even if some of these adjustments were already flagged in NAB's 18 August third quarter update.It's a great shake up that's long overdue. NAB's group chief executive, Andrew Thorburn, not long in the job, said that reporting larger UK conduct charges and impairments was "disappointing" but was being dealt with transparently and quickly.He insisted that the underlying performance of the NAB Group remained strong.It may be that new hires at the top, from CEO Andrew Thorburn and CFO Craig Drummond, along with several layers of direct reports, will bear the pain for the latest, long-delayed instalment in the inconsistent narrative that is NAB.That's because their bonuses are tied to ROE, so lower earnings in 2014 - which are estimated to nevertheless weigh in at more than A$5 billion - will trim the take home pay of many at the bank.The option of clawing back some bonus from, for example, Cameron Clyne and Mark Joiner, must be on the table. Along with a board nominee as an equally guilty party, perhaps.Some of NAB's losses disclosed yesterday stems from the group's pre-GFC conduct. But Australian organisations, and NAB in particular, have by no means side-stepped the damage from the 2008 shock.Some may wonder: how much more accounting will there be?