Ullmer departure appropriate, CBA boss says
(25 May 2004 – Australia) Commonwealth Bank chief executive director David Murray has said former head of Institutional Banking, Michael Ullmer, was not restructured out of a job but that Michael Katz was the most experienced man to lead the bank’s combined division.
Referring to the merger of CBA’s Premium Financial Services and Institutional and Business Services divisions, Murray told Channel 9’s Business Sunday program that he had sat down with Ullmer and the two agreed that it would be an "appropriate time" for Ullmer to end his seven year tenure at the bank.
Ullmer first served as CFO and was most recently group executive, IBS.
Last week Murray commented that the bank’s structure and client service would always take precedence over individual staff members.
Asked whether the changes elevated Katz to the position of most likely successor to Murray as CEO, he said the bank wouldn’t signal "who is and who is not" and that it would be the board’s decision.
He said the CBA board would consider both internal and external candidates for his job when the time came.
"It’s very important to have that tension," Murray said.
But much like the current Australian prime minister, Murray didn’t envisage relinquishing his position any time soon, and felt that CEO turnover in Australia was generally too high.
"…that longevity of the CEO can actually maintain the continuity of a company. Also we know from the United States about a third of bank CEOs are people who’ve actually started their careers inside their bank," he said.
Murray said the rule of thumb he used to determine whether an incumbent was still effective in their role was whether they approached the job energetically.
"No energy, don’t stay," he said.
In further news, CBA said it would save $200 million this year as part of a three year plan to reduce costs.
Murray said the bank would meet its target of $620 million in savings next year.
"We are likely to exceed the benefit targets for that period and we are now moving towards the implementation of the most important activities," he said.
Last year the bank cut 3,700 staff following a review by management consultancy outfit firm McKinsey.
Ullmer first served as CFO and was most recently group executive, IBS.
Last week Murray commented that the bank’s structure and client service would always take precedence over individual staff members.
Asked whether the changes elevated Katz to the position of most likely successor to Murray as CEO, he said the bank wouldn’t signal "who is and who is not" and that it would be the board’s decision.
He said the CBA board would consider both internal and external candidates for his job when the time came.
"It’s very important to have that tension," Murray said.
But much like the current Australian prime minister, Murray didn’t envisage relinquishing his position any time soon, and felt that CEO turnover in Australia was generally too high.
"…that longevity of the CEO can actually maintain the continuity of a company. Also we know from the United States about a third of bank CEOs are people who’ve actually started their careers inside their bank," he said.
Murray said the rule of thumb he used to determine whether an incumbent was still effective in their role was whether they approached the job energetically.
"No energy, don’t stay," he said.
In further news, CBA said it would save $200 million this year as part of a three year plan to reduce costs.
Murray said the bank would meet its target of $620 million in savings next year.
"We are likely to exceed the benefit targets for that period and we are now moving towards the implementation of the most important activities," he said.
Last year the bank cut 3,700 staff following a review by management consultancy outfit firm McKinsey.
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