CBA shares rise following leadership changes

CBA is saying goodbye to its deputy CEO. But why?

Commonwealth Bank of Australia (ASX: CBA) shares are rising on Wednesday.

At the time of writing, the banking giant's shares are up 0.3% to $104.04.

This compares favourably to the performance of the ASX 200 index, which is trading a fraction lower today.

Confident male executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office

Image source: Getty Images

Why are CBA shares outperforming?

It's unclear why CBA shares are outperforming today. Though, there was a small piece of news out of the bank.

That news is that CBA is eliminating the deputy CEO role after a job well done by David Cohen.

According to the release, Cohen will finish his role as deputy CEO on 31 December after successfully achieving his objectives.

CBA highlights that he was appointed to the role in November 2018 to support the bank's efforts to simplify its portfolio and increase focus on customer remediation and complaints.

With the recent announcement of the intended sale of CBA's Indonesian subsidiary, PT Bank Commonwealth, and substantial progress on legacy customer remediation programs, his work is now done and the role is no longer required.

However, Cohen will continue to serve as CBA's representative on the Board of PT Bank Commonwealth during its sale transition. He will also remain a director of ASB, the company's New Zealand banking and funds management businesses.

Some investors may see this exit as a sign that the bank is now completely over its issues and doesn't expect anything similar to occur for the foreseeable future.

Commenting on the news, CBA CEO Matt Comyn said:

David has been instrumental in helping CBA become the simpler, better bank that our customers deserve. Thanks to his deep experience, sound judgement and strong values, he has helped guide the bank through some of our most challenging periods.

David has been a valued member of the Executive Leadership Team and a respected role model and mentor to countless team members across the bank. He has provided me with invaluable support, and on behalf of the Board, Executive Leadership Team and all the people of the Commonwealth Bank, I thank him for his distinguished service and wish him well for the future.

CBA shares are down approximately 3% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

Bank building with the word bank in gold.
Bank Shares

If I invest $15,000 in NAB shares, how much passive income will I receive in 2027?

Is NAB a strong option for dividends?

Read more »

Happy young woman saving money in a piggy bank.
Bank Shares

How many CBA shares do I need to buy for $10,000 of passive income?

The banking giant is popular with income investors for a reasons.

Read more »

couple happily discussing their issues with a banker
Bank Shares

Bendigo and Adelaide Bank vs Bank of Queensland: Which is better value?

Comparing Bendigo and Adelaide Bank vs Bank of Queensland shares: which regional bank looks better value on recent fundamentals and…

Read more »

Four business people wearing formal business suits and ties walk abreast on a wide paved surface with their long shadows falling on the ground ahead of them.
Bank Shares

Westpac vs Macquarie Group: Which bank is better value now?

Westpac vs Macquarie Group: which bank share offers Aussies better value for October? Here’s how the heavyweights compare on dividends,…

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Bank Shares

If I invest $8,000 in CBA shares, what passive income could I earn in FY27 and FY28?

Brokers aren't too bullish about the outlook for the bank shares over the next 12 months, but its passive income…

Read more »

Couple using their digital tablet together.
Bank Shares

Are CBA shares still worth buying near $150?

I look at whether the recent pullback has made this major bank more attractive today.

Read more »

Bank written on a brown building.
Bank Shares

Westpac vs NAB shares: Which big bank is the better buy?

I compare Westpac and NAB shares for value, yield and momentum – here’s which bank I’d buy now.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

If I invest $10,000 in CBA shares today, what could they be worth in October 2027?

Find out what brokers expect next out of CBA shares.

Read more »