Westpac facing generational leadership change

Westpac CEO Brian Hartzer (left) and chairman Lindsay Maxsted. Picture: AAP

Since its near-death experience in 1992, one of the hallmarks of Westpac has been leadership stability, both at board and management level.

That’s all about to change, although not in a dramatic way, like Commonwealth Bank after the 2017 Austrac scandal or National Australia Bank after the twin resignations of chairman Ken Henry and chief executive Andrew Thorburn earlier this year.

At Westpac, it’s more of a transition period, starting in recent months with the departures of three senior executives — consumer boss George Frazis, BT chief executive Brad Cooper, and chief financial officer Peter King.

On top of that, long-serving chairman Lindsay Maxsted comes up for re-election at the 2020 annual meeting.

Maxsted has been in the job since December 2011 — a lot longer than his major-bank peers — and at the very least would be considering his future.

It was Maxsted who oversaw Brian Hartzer’s appointment as chief executive in February 2015.

By February 2020, Hartzer will have been CEO for five years, which will be a lot closer to the end of his term than the beginning.

Convention suggests Maxsted’s successor will choose Westpac’s next CEO, which opens up a lather of speculation about the bank’s next generation of leaders; principally about whether they will be internal or external appointments.

History suggests the next chairman will come from existing boardroom ranks, with the leading contenders thought to be — in no particular order — ex-Allens managing partner Ewen Crouch, former AMP chief executive Craig Dunn, and former Morgan Stanley Australia CEO Steve Harker.

Dunn, of course, has some AMP baggage, which last year earned him a 36 per cent vote against his re-election.

There is also a precedent for the rapid-fire elevation of a new director to the chairman’s post.

In December 2000, the former head of Rio Tinto Leon Davis became chairman after joining the board in November 1999.

As for the next CEO, it’s too early to anoint anyone as the internal favourite.

Any shortlist, however, would have to include institutional boss Lyn Cobley and consumer banking chief David Lindberg.

New business banking chief Guilherme Lima, who was recruited last June from HSBC in Hong Kong where he was group head of wealth, is also seen as someone to watch if he gets some runs on the board.