Poached execs

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Commonwealth Bank ’s CEO Matt Comyn is learning first hand that the bank's biggest export these days might be its executive talent.

Earlier this week, Capital Brief’s Andrew Cornell revealed that Westpac has poached CBA’s chief data analytics officer Andrew McMullan, as it intensifies technological transformation through its UNITE project.

The poaching prompted an exasperated Comyn to take a swipe at his big four rivals over their internal talent management. “I’m probably the only one in my executive team the other banks haven’t approached,” he told Capital Brief. 

This raid closely followed Westpac ’s poaching of ANZ ’s customer advocate Evelyn Halls OAM and NAB ’s CFO Nathan Goonan in March. The battle for top talent is shaping up to be a defining theme within Australian banking in 2025.

But arguably the bigger story is the scramble for elite AI and data talent as global corporations brace for the impact of the generative AI moment. Banking and financial services — simultaneously data rich and process heavy — are ripe for an AI overhaul. 

Here’s what else happened this week…

'It was all bullsh**t': Liberals and Freshwater set to split after polling disaster

The Liberal Party is expected to split from its pollsters at Freshwater Strategy following the party’s historic election loss. The polling firm has faced intense scrutiny and backlash for its role in the defeat and is now set to lose, or walk away, from one of its biggest contracts.

In the final days of the election campaign, opposition insiders remained confident that Labor would form a minority government. This was entirely based on internal polling.

But when the votes were counted and Labor surged to over 90 seats, the Liberal Party was entirely blindsided.

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Unrealised gains, unleashed fury: Behind the war over Labor's $3m super tax

The Albanese government's planned super tax changes barely sparked a discussion when first announced in 2023. But that's since changed.

The controversial proposal will see super funds with balances above $3 million taxed at a higher rate — and with any unrealised capital gains included.

Since Labor’s landslide election victory, this plan has been met with strong criticism from opposition parties and parts of the business sector — in particular the startup and VC community, where the debate has highlighted a broader challenge: how Australia’s innovation sector can better influence policy. 

Our economic correspondent Jennifer Duke did a deep dive on Labor’s controversial policy, speaking to various economists and business leaders about the super tax tweaks. Or for Jennifer’s video explainer on the policy and the arguments for and against, go here.

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Ex-ANZ CEO Mike Smith says Australia's fintech red tape can actually be an advantage

Fintech investor and former ANZ CEO Mike Smith says Australia is the most heavily regulated and bureaucratic market he’s encountered for fintech innovation — but that could actually be a competitive advantage.

Lightspeed Group CEO Mark Fitzpatrick , a serial founder and investor, shared this sentiment, saying international backers were often very comfortable with Australian fintech startups due to the country’s stringent regulatory and compliance framework.

Both were speaking at a Blossom Capital Partners ’ fintech event, where the conversation focused on how to win backing from banks. “Australian banks are incredibly conservative animals, reluctant to change,” Smith said, adding that founders should identify key individuals within a bank — not necessarily the CEO — and come armed with a clearly defined problem and solution.

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Justice Lee's blunt message to boards: ‘Do the work’

During the final days of the ASIC v Star Entertainment hearing this week, Justice Michael Lee gave some advice to directors and in-house counsel. 

He gave short shrift to the argument that Star’s non-executive directors couldn’t be expected to read all the material given to them before a board meeting. And he suggested that if they were collecting fees, then maybe she should put up or shut up.

But later in the week he was more conciliatory, noting that “greater and greater” responsibilities were being imposed on directors, and that “one must be careful [about] imposing an unrealistic burden on people performing a function which is not a full-time function”. He also indicated it will be a “long judgement” and it might not land until December.

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Brandon Capital, Labor’s NRF invest $40m into glaucoma biotech PolyActiva

Melbourne-based biotechnology company PolyActiva has secured $40 million in Series C funding to advance its glaucoma impact technology.

PolyActiva’s potentially revolutionary technology involves a tiny polymer impact that delivers glaucoma medication directly into the eye over six months. Current treatments rely on daily eyedrops, but fewer than half of patients use their medication consistently.

The investment includes $27 million from Australia’s National Reconstruction Fund Corporation, as well as participation from existing investor Brandon Capital , and represents a significant bet on the country’s ability to commercialise homegrown research.

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Verbatim of the week

I’d rather stick pins in my eye than own CBA.

– Allan Gray CIO Simon Mawhinney, speaking at the firm's investment forum in Sydney, laments Commonwealth Bank being valued at a higher forward multiple than Nvidia.

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