Westpac’s executive ranks set for change as new CEO Anthony Miller takes charge

Anthony Miller officially takes on the Westpac CEO role next week, which is likely to usher in a period of executive changes, including the expected departure of CFO Michael Rowland.

Westpac’s incoming chief executive Anthony Miller, left, and outgoing CEO Peter King, who has led the big four bank for the last five years. Picture: Jane Dempster

Expect sweeping changes at Westpac around the time new chief executive Anthony Miller steps into the CEO’s office on December 16.

The changeover of a major bank CEO typically brings with it new faces at the executive level, and analysts and investors are closely watching to see where the deckchairs land.

This column understands that among the changes is the expected departure of chief financial officer Michael Rowland. He may shortly call time on his more than four-year tenure at the Sydney-based bank. Rowland, 63, joined Westpac as CFO in September 2020 to oversee the finance, audit, investor relations, tax and treasury functions.

Prior to that he was a KPMG partner in management consulting and has also had stints at ANZ and ING Australia.

A Westpac spokesman declined to comment on Rowland’s potential retirement from the bank. Rowland oversaw the turbulent years of Westpac’s response to its anti-money laundering and compliance failures, culminating in a record $1.3bn fine paid to Austrac. But he has since strengthened the bank’s balance sheet, with Westpac’s common equity tier one capital ratio sitting at 12.5 per cent, allowing for a recent increase to its share buyback program.

Investors canvassed by this column say Rowland’s report card is mixed and they are interested to see how any succession planning plays out for the crucial CFO function. It would come as the prudential regulator weighs up phasing out the use of additional tier one capital instruments, more commonly referred to as hybrids, by banks.

The anticipated change will increase the workloads of the major banks’ treasury and finance units.

Westpac CFO Michael Rowland. Picture: Jane Dempster/The Australian.

If Rowland retires or leaves it will add to a host of other roles Miller is filling, including his former position as head of the business bank and wealth.

About a month ago, Westpac head of human resources Christine Parker flagged her departure from the bank.

Parker – who is close to outgoing Westpac CEO Peter King – has committed to remaining in the role while a search is undertaken for her replacement.

She has had a 13-year stint on the group executive team after joining the bank in 2007.

Investors are also closely watching to see if retail banking boss Jason Yetton decides to stay on after missing out on Westpac’s top job to Miller.

Among those in the running internally to take over from Miller as head of business and wealth are commercial banking general manager Shane Howell and corporate and institutional bank general manager Alastair Welsh, who had a short stint running the business unit on an acting basis in 2019. Peter Herbert was last month appointed acting boss of business banking and wealth, moving from his position as chief operating officer of the division. Herbert can’t be ruled out as a contender, while Westpac has also been screening external candidates for the position.

There may also be changes in store within Westpac’s treasury function.

These early appointments for Miller are key for setting the tone and early momentum for his tenure as CEO. Westpac’s outgoing boss King and chairman Steven Gregg will front investors on Friday at the bank’s annual general meeting, but shareholders will no doubt want to also hear from Miller. He has had the transitional period to speak to executives, staff and refine his strategic vision for the bank, against the backdrop of a challenging period for growth. That backdrop hasn’t, however, been reflected in the share prices of the major banks in 2024.

Miller is expected to only have a few days off over Christmas as he rolls up his sleeves on a range of Westpac initiatives.

The bank’s overdue technology simplification program, dubbed Unite, is a priority. It sees Westpac through to the end of its 2028 financial year and reduces the number of tech systems, networks and platforms from more than 180 to about 60.

The pressure is on for Miller to execute that well, given the significance of the program and the potential risks associated with stuffing it up. It’s the most notable technology program embarked on in the past two decades at Westpac and represents the bank investing in its future as well.

King’s farewell drinks were held on the terrace of the bank’s Kent Street, Sydney head office last week, with speeches from Parker, Miller, head of customer Carolyn McCann and a longstanding employee of several decades who added comedic value. King also addressed current and former staff and board members. Former Westpac economics guru Bill Evans made a contribution by sending a video and referring to King as Westpac’s unlikely ­saviour!