Executive exits a chance for change at Westpac
Insiders say Westpac will use the resignation of two senior executives, including a one-time CEO aspirant, to reshape the embattled bank.
Westpac will use the resignation of two senior executives, including consumer boss and CEO aspirant David Lindberg, to reshape the embattled bank, according to insiders.
Both Mr Lindberg and chief information officer Craig Bright have accepted positions with major UK banks.
Mr Lindberg will follow the path taken by former Westpac CEO Brian Hartzer and National Australia Bank CEO Ross McEwan, becoming CEO of retail banking at Natwest Group, which is part of Royal Bank of Scotland.
It is understood that Mr Bright will join rival UK bank Barclays.
Westpac told the Australian Securities Exchange on Tuesday that it had started an international search for replacements.
A source close to Westpac said Mr Lindberg, a protege of Mr Hartzer, would have made a career reassessment after chief financial officer Peter King became CEO last month.
“Peter and (new chairman) John McFarlane will reshape the business with the new appointments,” a Westpac insider said.
“It’s likely someone external will replace David.”
As a consultant with First Manhattan in New York, Mr Lindberg worked with Mr Hartzer when the latter was a senior ANZ executive.
He was recruited by ANZ and was then lured to Commonwealth Bank, where he reported to then-retail boss Ross McEwan.
Both Mr Hartzer and Mr McEwan ran the RBS retail bank, with Mr McEwan becoming CEO of NAB late last year.
In a further move, Westpac announced the appointment of Les Vance to a new role of group executive, financial crime, compliance and conduct.
Mr Vance, who is currently chief operating officer of the consumer division, will oversee financial crime, compliance and conduct management.
The move effectively carves up the risk function so that chief risk officer David Stephen can concentrate on financial risk management, particularly the credit portfolio as the COVID-19 fallout intensifies.
In a letter to shareholders in April, Mr McFarlane flagged a new approach to the way in which the board would handle the risk function.
Regulatory and legal investigations and remediation, including financial crime remediation, would be run by a separate committee, the board legal and regulatory committee.
This would allow the risk and compliance committee to focus on setting the risk appetite and current and future credit policies, as well as market and operational risks.
Mr King said Mr Vance was a “thoughtful and energetic” executive, who would improve and strengthen Westpac’s financial crime and compliance management.
“Westpac has made significant progress in improving its financial crime capability and I am confident Les will continue to build on this platform of work,” he said.
“His deep understanding of the bank and risk management will help us further strengthen our management of non-financial risk.”
On Friday, Westpac lodged its defence to Austrac’s November statement of claim against the bank.
While Westpac admitted failing to lodge 19.4 million international funds transfer instructions – the lion’s share of more than 23 million alleged contraventions of anti-money laundering laws – within the required 10 business days, it contested or provided context to other matters.
Westpac and Austrac failed to conclude an agreed statement of facts and admissions, or agree on an appropriate penalty.
The bank has set aside a $900m provision but Austrac is believed to be seeking a $1.5bn-$2bn penalty.
Negotiations are continuing between the parties.
Mr Vance, a former partner at national law firm Freehills, will be elevated to Westpac’s executive committee, where he will have a limited oversight role in relation to the Austrac case.
The Austrac case itself is being run by Westpac’s chief legal counsel Rebecca Lim.
Mr King said Mr Lindberg made significant progress on improving customer satisfaction and the digital experience at Westpac, while Mr Bright improved the capability of the bank’s technology infrastructure.
He also implemented the customer service hub and achieved significant efficiencies in vendor services.
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