Title : NAB appoints ex-RBS boss Ross McEwan as CEO after five-month search
link : NAB appoints ex-RBS boss Ross McEwan as CEO after five-month search
NAB appoints ex-RBS boss Ross McEwan as CEO after five-month search
Veteran banking executive Ross McEwan has been appointed new chief executive of the embattled National Australia Bank, which remains in damage control amid the fallout from the financial services royal commission.
Key points:
- Ross McEwan was most recently CEO of Royal Bank of Scotland, before that he was an executive at CBA
- The announcement comes five months after NAB's former CEO Andrew Thorburn resigned in the wake of the banking royal commission
- Mr McEwan will commence work with NAB once his current obligations at RBS are completed, no later than April 2020
Mr McEwan, most recently chief executive of the Royal Bank of Scotland, replaces Andrew Thorburn, who was forced to resign in February this year after damning findings in Kenneth Hayne's final report.
A one-time head of retail banking at the Commonwealth Bank, the New Zealand-born banking heavyweight had narrowly missed out on the top job to Ian Narev, who retired in the lead-up to the royal commission after presiding over CBA during a period of multiple scandals.
National Australia Bank acting chief executive Phil Chronican, who succeeds Dr Ken Henry as chairman in November this year, praised Mr McEwan's long-standing knowledge of Australian banking.
"Ross McEwan is the ideal leader for NAB as we seek to transform our operations and culture firmly around leading customer service, experience and products," Mr Chronican said in a statement to the stock exchange.
"Ross brings a compelling range of experience across finance, insurance and investment with a track record of delivering important and practical improvements for customers.
"RBS has been through many of the same challenges which NAB now faces around culture, trust and reputation."
Mr McEwan announced his resignation from RBS in April 2019 and will start with NAB once his obligations to his current employer have been discharged, no later than April 2020.
The British Government took majority ownership of RBS in the wake of the global financial crisis to save the bank from collapse, after it had overstretched itself with a rapid expansion prior to the GFC.
The British Government still owns 62 per cent of RBS, although it plans to sell that stake by 2024.
NAB singled out by Hayne in royal commission report
Mr McEwan's appointment comes as NAB works to rebuild its reputation with consumers, governments and regulators after allegations that it engaged in potential criminal misconduct as part of the "fees for no service" scandal revealed during the royal commission.
Kenneth Hayne's condemnation of the NAB's culture and leadership ended Andrew Thorburn's career and precipitated Dr Henry's retirement as chairman after damaging performances under questioning from senior counsel assisting the commission Rowena Orr QC.
Speculation about Mr McEwan's possible appointment accelerated after he resigned from Royal Bank of Scotland in April this year.
"It is a privilege to return to Australia and lead NAB at a crucial time for the bank, its customers, employees, shareholders and the broader community," Mr McEwan said.
"We must also meet and exceed the expectations of our many stakeholders. It is essential that I protect and accelerate the bank's transformation program. The community also expects a higher level of accountability and transparency."
The appointment comes after a global search, with NAB's head of business banking Anthony Healy seen as the most likely internal contender.
Mr McEwan's pay deal is lower than his predecessor, with a fixed salary set at $2.5 million a year with the ability to earn a short-term bonus of up to 150 per cent.
Mr McEwan's long-term incentives are fixed at up to 130 per cent of the fixed salary over four years.
The appointment of Mr McEwan — who turned around Royal Bank of Scotland in the wake of the global financial crisis — heralds a critical new era for the National Bank as regulators make the case for potential criminal prosecutions against senior bankers.
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