A big day for departures in financial services yesterday with the CEO of the AMP, Craig Meller revealing the timing of his departure, the CEO of Bendigo and Adelaide Bank, Mike Hirst joining him in the exit room and a string of senior execs from the Commonwealth Bank, including a contender for the top job won by Matt Comyn.
The market took the news in a negative fashion, coming on a day when the ASX 200 fell 30 points or around 05%.
Shares in the AMP fell 2.8% to $5.07, Bendigo Bank shares fell 2% to $9.94 and CBA shares lost 1% to $72.02.
Clearly investors regarded these departures as bad news seeing the price falls were all much larger than the half a per cent slide in the ASX 200.
Staring with the CBA – three senior executives will depart the bank ahead of incoming CEO Matt Comyn assuming his role on April 9.
Kelly Bayer Rosmarin, the group executive of institutional banking and markets – who was in the running for CEO but missed out to Mr Comyn – is top of the list with David Whiteing, the group executive of enterprise services and chief information officer, who has led the bank’s technology team for almost four years. Both of these depart next month.
And Melanie Laing, group executive of human resources, is also departing and will be gone by the end of the year.
The losses mean there are now five group executive positions open at the nation’s largest bank.
At the AMP CEO Craig Meller plans to retire around the end of this year.
The company said yesterday would start a search in Australia and offshore for a successor, led by chairman Catherine Brenner.
Ms Brennan said Mr Meller had indicated he would like to retire at the end of the year as part of a regular discussion on succession.
”As it’s important to have continuity of leadership to deliver on our longer-term growth ambitions, Criag and the board jointly agreed the time is right to begin searching for his successor," she said.
Mr Meller would continue to lead the company through this year and would work with the board to ensure a “smooth and orderly leadership transition”.
The AMP reported a full year 2017 profit of $1.04 billion last month thanks to improvements in its banking and funds management divisions, and a turnaround in its troubled life insurance business.
Mr Meller was named CEO in January 2014 and before that was head of AMP Financial Services from 2007-2013.
And Bendigo and Adelaide Bank will get a female CEO to replace Mike Hirst from July 2.
The bank announced yesterday that 30 year veteran, Marnie Baker would be the new CEO. She is currently the bank’s chief customer officer.
Mr Hirst said in yesterday’s statement that he was very pleased Ms Baker had been chosen as the new managing director.
“Her understanding of customers and the bank’s long history of its role in the community are real strengths,” he said.
Ms Baker has been working at the bank for almost 30 years and has been part of the executive team for nearly 20 years.
Bank chairman Robert Johanson said Ms Baker’s appointment would enable the Bank to build on its position.
“Marnie has been instrumental in driving the successful delivery of our customer-connected strategy which has delivered significant commercial and reputational value for the business,” Mr Johanson said.
He said Mr Hirst had been an outstanding leader and left the bank in ‘great shape’.
“Mike has helped build a business that is now the fifth biggest retail bank in Australia – one that is strongly-funded, well capitalised, and with a Net Promoter Score that leads the way among Australian banks,” Mr Johanson said.
