NAB: Ross McEwan named new CEO of National Australia Bank

The NAB has announced a new chief executive to replace Andrew Thorburn, who resigned after being shamed by the royal commission.

NAB has announced its successor to guide the major lender out of the ashes of the banking royal commission.

Former Royal Bank of Scotland (RBS) boss Ross McEwan will take over as chief executive, filling the role left empty by Andrew Thorburn, who resigned in February after being singled out in Commissioner Kenneth Hayne’s scathing review of the sector.

The new boss will take home a cool salary of $2.5 million with the potential to pocket nearly $4 million in bonuses each year.

Both Mr Thorburn and chair Ken Henry were the major scalps of the banking scandal, with the inquiry’s final report detailing the lack of confidence Commissioner Hayne had in the two leaders of the major bank.

He wrote NAB “stands apart” from the other three major lenders.

“More particularly, I was not persuaded that NAB is willing to accept the necessary responsibility for deciding, for itself, what is the right thing to do, and then having its staff act accordingly,” he wrote.

“Overall, my fear — that there may be a wide gap between the public face NAB seeks to show and what it does in practice — remains.”

NAB bosses Andrew Thorburn and Ken Henry resigned in the wake of the royal commission. Picture: David Geraghty/The Australian.

The damning assessment led to Mr Thorburn announcing his resignation. He said at the time leadership at the bank “clearly needs to get better”, noting “we’ve fallen short”.

Mr Thorburn said he offered to step down to help the board with its desire for change, adding he has “no bitterness” about the decision. “I accept the board has the right to make that decision in the best interest of the company,” he said.

The role of NAB chief executive had been occupied by former director and chairman-elect Philip Chronican, who boasted on Friday that with Mr McEwan at the helm, NAB had secured a global executive with deep experience in both international markets and the Australian banking environment.

New Zealander Ross McEwan will take over as NAB CEO no later than April.

New Zealand born, Mr McEwan announced his resignation in April from RBS, which he had led since 2013.

He will start at NAB once he officially steps down from his previous role, which is expected to be no later than April.

“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.

“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 had previously held executive roles at the Commonwealth Bank, where he was boss of retail as well as general manager.

He said it was a “privilege” to return to Australia and lead NAB at a crucial time for the bank, its customers, employees, shareholders and the broader community.

“There are a number of areas where NAB can extend its lead, such as business banking, agriculture and health, and other areas where I believe we should consistently lead such as customer service,” 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 from the banking industry. Australians deserve NAB to be a world-class service provider.”

When Dr Henry announced his resignation as chair earlier in the year, he said he would stay in the role until a new chief executive was announced.

He will now be replaced by Mr Chronican who had been acting chief executive for the last five months.

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Originally published as NAB: Ross McEwan named new CEO of National Australia Bank