June 23, 2019 / 11:34 PM / 4 months ago

UPDATE 1-Australia's Westpac bank says review finds cultural flaws

(Adds background on public inquiry, remuneration vote)

June 24 (Reuters) - Westpac Banking Corp’s culture can slow decision-making and dilute accountability, Chairman Lindsay Maxsted said on Monday, citing an internal report.

The self-assessment also found Australia’s second-biggest lender’s approach to cultural issues was “less mature than our approach to managing financial risks,” he said in a letter to shareholders.

The report into culture, governance and accountability was requested by Australia’s financial regulator after a public inquiry exposed widespread misconduct in the sector last year.

The damaging revelations led Westpac shareholders to vote against the board’s executive remuneration plans in late 2018.

Maxsted said the bank would make changes to its next remuneration proposal expected later this year.

Under Australian corporate rules, if more than a quarter of shareholders vote against a pay proposal for two years running, they can call for the board to be removed. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Peter Cooney and Stephen Coates)

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