Morgan denies Westpac chair bid

Former Westpac CEO David Morgan has emphatically ruled himself out as a contender for the chairman’s position.

Former Westpac chief executive David Morgan. Picture: Hollie Adams

Former Westpac chief executive David Morgan has emphatically ruled himself out as a contender for the chairman’s position at the embattled bank.

Dr Morgan, who was CEO from 1999 to 2007 before taking up a senior executive position at the financial services private equity firm JC Flowers, has been floated as a possible successor to the incumbent, Lindsay Maxsted.

However, contrary to a media report over the weekend, Dr Morgan has ruled himself out. “I read that (article) with great surprise. It is completely untrue,” he said

“The facts are I have not been, I am not, and will not be a candidate for the Westpac chairman’s position.”

The board is in turmoil after Austrac lodged a Federal Court case against the bank on November 20 that alleges more than 23 million breaches of anti-money laundering and counter-terrorism financing laws. The statement of claim created a firestorm by linking payments made 12 Westpac customers to child exploitation in the Phillipines.

Chief executive Brian Hartzer resigned, Mr Maxsted brought forward his departure next year, and non-executive Ewen Crouch withdrew his bid for re-election at the December 12 annual meeting.

The bloodletting might not end there, with proxy advisory firms ISS and CGI Glass Lewis recommending a “no” vote against the re-election of Peter Marriott. Westpac also faces a second strike on its remuneration report and a possible board spill.

Mr Morgan’s withdrawal leaves an open field of internal and external candidates for the chairman’s job. Among the internal contenders are the former head of KPMG Australian Peter Nash, and ex-Morgan Stanley Australia boss Steve Harker.

Mr Maxsted last week put Mr Nash in charge of the board’s financial crime committee, which will oversee an independent review by Promontory Financial Group of all issues giving rise to the Austrac matter, starting with the LitePay payments channel used by the 12 customers.

“If and where procedural, escalation and accountability failings are confirmed through Promontory’s review, there will be immediate action taken,” the chairman said.

Depending on availability and desire, other potential candidates include previous directors Gordon Cairns and Elizabeth Bryan. Mr Cairns, however, is chair of Woolworths and Origin Energy, while Ms Bryan is chair of IAG and Virgin Australia.

Gail Kelly, who succeeded Dr Morgan as CEO, is also considered a chance, although she hasn’t pursued many public company board positions apart from accepting a role at Singtel.