Banking News

NAB lose chairman and CEO following Royal Commission

NAB lose chairman and CEO following Royal Commission

(7 February 2019 – Australia) While none of the banks emerged from the Royal Commission into Banking unscathed, National Australia Bank was singled out and is now without its chairman and CEO following the delivery of the final report.

The joint resignation of chairman Ken Henry and CEO Andrew Thorburn comes off the back of stinging criticism for consistently failing to give a fair deal to customers, typified by behaviour at its wealth management arm which had levied $100 million in fees but failed to deliver any services in return.

Dr Henry’s resignation came as no surprise following public backlash to his appearance at the Commission and his “contemptuous” response to the Commission’s final report.

Mr Thorburn, by contrast, received the backing of the Board following the final report but has been forced to step down as ongoing investigations into large-scale fraud by his former chief of staff portrayed a culture of extravagant and lavish spending in his executive office.

In a statement, Mr Thorburn says: “As CEO, I understand accountability. I have always sought to act in the best interests of the bank and customers, and I know that I have always acted with integrity. However, I recognise there is a desire for change. As a result, I spoke with the Board and offered to step down as CEO, and they have accepted my offer.

Philip Chronican, a current NAB Director, will serve as acting CEO until a permanent appointment is made.

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