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As the AUSTRAC scandal continues to unfurl, Westpac chief executive officer Brian Hartzer has announced he will be stepping down from his role, with current chief financial officer, Peter King, to take over as acting CEO, effective Monday, 2 December
King will hold the role as a global search takes place for a permanent replacement.
“I am honoured to be appointed to this role,” he said.
“I understand the responsibility of this position and the importance of Westpac both as an institution and Australia’s oldest bank. I am committed to helping address the current issues and restore the reputation of the bank.”
Current chief operating officer, Gary Thursby, will act as CFO.
According to chairman Lindsay Maxsted, King is the “right choice” for the current circumstances due to his “exceptional integrity” and the market-wide respect he commands.
Maxsted also announced he will bring forward his retirement as chairman to the first half of 2020, enabling an incoming chairman and the board to oversee the appointment of a permanent CEO.
“The board accepts the gravity of the issues raised by AUSTRAC,” Maxsted said.
“As was appropriate, we sought feedback from all our stakeholders including shareholders and having done so it became clear that board and management changes were in the best interest of the bank.”
The chairman also thanked Hartzer for his service saying,“Brian leaves the bank with a strong balance sheet, with each of our businesses number one or two in their markets.”
Upon his departure, Hartzer said, “As CEO, I accept that I am ultimately accountable for everything that happens at the bank. And it is clear that we have fallen well short of what the community expects of us, and we expect of ourselves.”
