NAB’s Kiwi connection: McEwan and Chronican to lead bank out of its mess

Interim CEO Phil Chronican has begun the cultural overhaul needed at NAB. Picture: Adam Yip

National Australia Bank could not be in better hands with two battle-worn Kiwis in Phil Chronican and Ross McEwan running the shop.

The market will be relieved at the NAB’s decision and McEwan comes to the table ticking all boxes. He is exactly the right person to lead the bank.

The bank’s stock was up 1.7 per cent in early trade at $27.38 a share, and it’s now the best performing bank this year.

McEwan’s fixed pay at $2.5 million is above two other two bank bosses but below that of Brian Hartzer at Westpac who, ironically enough, was the man who hired him to take the retail job at the Royal Bank of Scotland in London.

McEwan went on to run RBS.

Hartzer has fixed pay of $2.7 million against McEwan at $2.5 million, while former NAB boss Andrew Thorburn got $2.3 million. Matt Comyn at Commonwealth Bank gets fixed pay of $2.2 million and Shayne Elliott at ANZ $2.1 million.

Chronican hails from Dunedin in New Zealand’s deep south and became chair after a stellar career at Westpac and ANZ.

McEwan, who turned 62 this week, comes from Auckland and made his name at CBA, where he was just pipped for the top job in 2011 by fellow Aucklander Ian Narev.

New Zealander Ross McEwan is NAB’s new CEO. Picture: AP

NAB then has two seasoned bankers at the helm at the very time it needs exactly that, as it attempts to recover from some two decades of maladministration.

When trust in the industry is at rock bottom, the bank’s immediate fate could not be in better hands - at least on paper.

McEwan will need to wait a while until Royal Bank of Scotland finds a replacement for him, but he is slated to take the reins by April next year at the latest.

Chronican has done a great job in his role as executive chair after the abrupt post-royal commission departure of Thorburn and chair Ken Henry.

The bank still has a long way to climb out of its mess and is a popular tip to be one of the institutions to be hit with criminal charges flowing from the royal commission.

But Chronican has started the cultural overhaul which, in reality, will take some years to complete.

NAB’s strength is in business banking, particularly small business, and while McEwan’s strength is retail he is well placed to direct NAB.