The embattled bank, Australia's second-largest lender, has given its interim chief executive the job, in a move that its chairman said provides «stability and strength» amid a tumultuous period for the bank and the global economy.
Westpac has named long-serving executive Peter King as its chief executive, four months after he was appointed interim CEO, the bank confirmed in a statement on Thursday.
«I believe we need a chief executive in place now, not later, and with full, rather than acting authority,» said John McFarlane, the former ANZ Bank CEO and Barclays boss who began his tenure as chairman of Westpac yesterday, after being confirmed in January.
According to the employment agreement, King, who has been with the bank for 25 years, is set to receive a pay packet of $2.4 million, and is eligible for $6.8 million in entitlements and incentives during his two-year tenure.
Period of Change
King already has his work cut out for him. Apart from dealing with the fallout from the Australian bushfires and the Covid-19 pandemic, the bank faces a number of allegations by Austrac over payments linked to child exploitation. It is also a defendant in two class-action lawsuits in the U.S. over its financial crime monitoring.
«My medium-term priorities remain to drive performance through our lines of business and sharper accountability, simplify the business through digital transformation, and lift our service culture and risk management capability,» King said.
Former CEO Brian Hartzer resigned from the Sydney-based bank with a $1.8 million payout – his full salary for 2020 – following a devastating scandal in which financial crime watchdog Austrac accused the bank of 23 million breaches of anti-money laundering laws, including for payments between known child exploiters.
