Anindita Chatterjee
Updated on: October 8, 2024 9:03 pm GMT
Westpac Announces Major Leadership Change as CEO Peter King Retires
Westpac Banking Corporation has announced a significant shift in its leadership team, with CEO Peter King set to retire after nearly five years in charge. The major Australian bank revealed on Monday that Anthony Miller, the current head of Westpac’s business and wealth division, will take over as the new chief executive starting December 16.
A New Chapter for Westpac
Anthony Miller, an experienced banker who joined Westpac in 2020, brings extensive industry knowledge to the role. Before his tenure at Westpac, he held the position of CEO at Deutsche Bank in Australia and New Zealand and has 16 years of experience at Goldman Sachs. In his new role, Miller aims to lead Westpac through a pivotal transition, focusing on regenerating trust and reliability with customers.
Compensation Details for the New CEO
As he transitions into his new position, Miller will receive an annual fixed salary of $2.5 million, which matches Peter King’s current compensation. Additionally, he is eligible for up to $2.35 million in short-term bonuses and $3.5 million in long-term bonuses, contingent upon meeting specific performance criteria.
Backing from Key Stakeholders
Peter King expressed confidence in Miller’s capabilities, stating, “Anthony will make a great CEO. In his time at Westpac, he’s proven he has what it takes to deliver for customers, employees, and shareholders.” Westpac’s chairman, Steven Gregg, also praised Miller as an ideal successor, noting his customer-focused approach and proven track record in the Australian banking sector.
Future Directions Under Miller’s Leadership
In his statement regarding the appointment, Miller highlighted his vision for Westpac’s future. “I want Westpac to be a bank built on trust and reliability – always there to help our customers through every one of life’s moments,” he said. He will continue to focus on the bank’s technology and risk transition strategies, building on the groundwork laid during King’s tenure.
The Context of King’s Departure
Peter King’s retirement comes amid a broader trend of leadership changes in Australia’s major banking institutions. Earlier this year, NAB announced the departure of Andrew Irvine as its CEO. Miller’s rise within Westpac also marks a significant shift, as he is expected to facilitate the new direction the bank hopes to pursue.
Regulatory Scrutiny and Corporate Challenges
Westpac is currently under scrutiny from corporate and prudential regulators following allegations regarding its mortgage broking subsidiary, RAMS Home Loans. The allegations include conducting business with unlicensed individuals and providing misleading information. In light of these challenges, the bank has announced the effective closure of its RAMS operations.
A Broader Perspective on Executive Salaries
As discussions around banking leadership continue, the remuneration of CEOs within the Big Four Australian banks has garnered attention. Recent reports indicate that all four major bank CEOs are earning base salaries exceeding $2.3 million, with various bonuses augmenting their overall compensation. This ongoing scrutiny poses questions about the value of these salaries, especially amid economic difficulties faced by everyday customers.
- Commonwealth Bank CEO Matt Comyn leads the pack with a total earning of around $7.3 million.
- ANZ’s Shayne Elliott follows with total compensation of about $6.2 million.
- Former NAB CEO Ross McEwan and Westpac’s Peter King both earned approximately $5.7 million and $6.2 million respectively before their departures.
Anthony Miller is getting ready to become the CEO of Westpac, and everyone in the banking world is paying attention. They want to see how his leadership will help the bank recover and plan for the future, especially with all the rules and challenges they are facing.
