National Australia Bank Ltd (ASX: NAB) has appointed a new Chairman, will that save the share price?
NAB is one of the four largest financial institutions in Australia in terms of market capitalisation, earnings and customers. However, in 2018, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending.
NAB has appointed a new Chairman
NAB’s previous leadership did not look good in the Royal Commission hearings. Both Mr Thorburn and Dr Henry were singled out for criticism by Commissioner Hayne in the report for their attitude and seeming lack of response.
Interim CEO Philip Chronican, who is currently receiving a fixed monthly fee of $150,000 including superannuation, has now been appointed as the new Chairman to replace the outgoing Ken Henry, according to the Australian Financial Review.
New NAB Chairman Mr Chronican is quoted as saying: “Much needs to change in a meaningful way at our bank. We have unfortunately been found wanting in too many areas when it comes to our customers, and I am determined to ensure that change happens to ensure we meet and exceed their expectations.”
The NAB Board had established two special committees to manage the selection processes for the Chairman and Group CEO roles. The NAB CEO will be chosen by the aptly named ‘CEO Selection Committee’ and is chaired by NAB Director Ann Sherry.
All eyes will be on the new CEO because the last few CEOs are not respected for some of the decisions and disappointments that happened under their watch.
“The next CEO needs to be somebody who understands what the industry has been through with the royal commission and can see their way to running a bank with the interest of its customers and deliver long term sustainable returns,” said Mr Chronican.
At this point I think there are a number of other investment ideas on the ASX I’d rather own compared to NAB
2 ASX Growth Shares That Could Do Much Better Than NAB
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