Suncorp CEO Michael Cameron steps down

Three banks are now on the hunt for a new chief after Suncorp signalled Michael Cameron’s exit.

Outgoing Suncorp CEO and Managing Director Michael Cameron. Picture AAP

Suncorp chief executive Michael Cameron has stepped down from his post after almost four years in the role, creating the sector’s third CEO search this year.

In an unexpected ASX statement today, the banking and insurance group said Mr Cameron would stay on until August 9 in an “advisory capacity”, which is two days after the group releases its 2019 earnings results, he will be replaced in an acting capacity by longstanding executive and finance boss Steve Johnston.

Fund managers had expressed some concern about Mr Cameron’s financial marketplace strategy and the company is also said to have been considering a spin off of its banking operations.

Suncorp (SUN) chairman Christine McLoughlin said that while Mr Cameron had made a “considerable contribution, now was the right time for change”.

“This will provide the opportunity for the company to enhance its performance in a highly competitive and challenging external environment as Suncorp seeks to strengthen its core businesses by focusing on its customers, products and brands,” she said in the statement.

“On behalf of the board I would like to thank Michael for his leadership in accelerating our digital capability and in driving a customer-first culture.”

Ms McLoughlin labelled Mr Johnston an “extremely experienced executive” who has an understanding of Suncorp’s core insurance and banking businesses.

“He is best placed to lead Suncorp and build on the group’s multi-channel capability,” she said.

Mr Cameron said it had been a “great privilege” to lead Suncorp and he was proud of what had been achieved.

“Suncorp now has the digital foundations in place to enable it to be nimble and to seize opportunities. I believe the business has great potential and will continue to enjoy success,” he said.

Mr Johnston said: “he was honoured to take on the role of acting CEO and lead this highly respected business”.

“I recognise the importance of this role, especially during this challenging time for the financial services industry. I am truly passionate about what we do and confident in our future,” he said.

Suncorp’s succession planning adds to CEO searches being conducted by National Australia Bank and Bank of Queensland.

NAB CEO Andrew Thorburn was a casualty of the Hayne royal commission and non-executive director and future chairman Phil Chronican is acting in the role until a successor is found.

BOQ is still finalising its search following the departure of Jon Sutton late last year, with operating chief Anthony Rose acting in the post.

Suncorp will undertake an internal and external search for a new CEO and the statement said the board plans to be in a position to announce the successful candidate in the latter part of the year.

Suncorp said despite the challenging operating environment its 2019 cash earnings are in line with market expectations.

“As noted at the interim result the external operating environment including natural hazards above allowance, investment market performance and unforeseen regulatory costs will impact the Group’s FY19 reported result and outlook,” the statement said.

At 10.35am (AEST), shares in Suncorp were down 16.5 cents, or 1.19 per cent, at $13.735.