NAB shares stumble on news of CEO stepping down
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More news: Shares in National Australia Bank were the only major bank stock trading lower in early trading on Wednesday, down 1.3% to $31.80. It followed the announcement that CEO and managing director Ross McEwan would step down from his roles on 2 April, and would be replaced by current head of business and private banking, Andrew Irvine.
Reporter's view: New NAB CEO, same NAB strategy
Reporter's view: Associate editor Andrew Cornell writes: "The most surprising aspect of Andrew Irvine replacing Ross McEwan as NAB CEO is that it is, with hindsight, not remotely surprising.
"Irvine already runs NAB’s powerhouse, the business bank, and in the three years he’s been on the job he has grown market share and earnings at a time when competitors are ramping up their investment in the sector.
"McEwan meanwhile, and his chair Phil Chronican, had been clear McEwan’s job was to restore NAB’s reputation and performance after a moribund couple of decades and a disastrous Royal Commission which cost the bank its CEO and chair.
"Power politics at the top end of town don’t always follow the script. CEOs decide they want to hang around, boards splinter, executives get restive, the market turns against those plans. Something goes wrong.
"In this case, looking back over the four years of McEwan’s reign (he was appointed from a highly successful turnaround gig at Royal Bank of Scotland, having been overlooked to run his former bank, Commonwealth Bank, after Chronican spent a year as executive chair), the timing is spot on."
Andrew Irvine to take over from Ross McEwan as NAB CEO
The news: National Australia Bank has announced Ross McEwan will step down from his executive roles, with Andrew Irvine to take over as group CEO and managing director.
The numbers: McEwan, who has led the bank since December 2019, will step down on 2 April. He will be replaced by Irvine, who has led NAB’s business and private banking unit since 2020.
The context: NAB chair Philip Chronican said Irvine had key strengths supporting his appointment including success leading Australia’s largest business bank franchise, people leadership, risk management and international experience. Irvine, a British-Canadian dual citizen, was previously head of the Canadian Business Banking unit at the Bank of Montreal and has also served roles at McKinsey & Company, Lycos Europe and Credit Agricole.
The source: ASX announcement
