Mysterious departure of two key Westpac directors

Westpac chair Steven Gregg has some explaining to do at the AGM after noting in his annual report two of four directors would renominate – but they have now stepped down.

Westpac chairman Steven Gregg will front the bank’s AGM next week.

Westpac chairman Steven Gregg has some work to do in boosting board numbers after two of the four people he said would renominate – or 20 per cent of the board – have opted to step down effective immediately.

At next week’s annual general meeting, Mr Gregg has also some explaining to do after mistakenly noting in his annual report released on November 4 the fate of two of the four renominating directors.

He said in his chairman’s report: “Additionally, current non-executive directors Nerida Caesar, Audette Exel, Nora Scheinkestel and Margie Seale, who have all made commendable contributions, will stand for re-election with the board’s support.”

When the notice of meeting was released two days later, Mr Gregg said: “Nora Scheinkestel will retire from the board in November this year and Audette Exel has decided not to seek re-election, and will stand down on December 13, 2024.

“On behalf of my fellow directors, I thank them for their contribution to Westpac.”

The two were key directors, with Ms Exel head of the risk committee and on the audit committee and Dr Scheinkestel head of remuneration. Both were relatively new appointments, serving just one term after having been appointed in the John McFarlane reign.

Mr Gregg became chair two years later in 2023.

In a separate statement released by the two on the day of the AGM notice, they pointed to the progress made in their time and expressed confidence about the bank’s future and staff.

Mr Gregg noted in his statement what good directors they had been.

Dr Scheinkestel is a director of Qantas and Brambles and Ms Exel said she wanted to focus more time on her charity advisory group Adara.

The Westpac board is now down to seven people, with two key roles in risk and remuneration left vacant.

It is assumed Mr Gregg was aware of their intention to step down when he said in his chairman’s letter they would be renominating and mistakenly included their names on the list of returning shareholders.

No comment was available on just why the two directors have walked, but clearly after the shop has been turned around they see better things for their time than remain on the Gregg-led board.

It is unusual for directors of blue chip companies like banks stay for just one term.

Separately, NAB has picked up a new business banking customer, with KPMG now on its books after being appointed as Westpac auditor.

Audit rules prevent auditors being clients of the firm.

Originally published as Mysterious departure of two key Westpac directors