The National Australia Bank Ltd (ASX: NAB) share price is trading lower on Friday following the release of an announcement.
In morning trade, the banking giant's shares are down 0.5% to $29.29.
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What did NAB announce?
Last week NAB announced the appointment of James Spenceley as a Non-Executive Director effective from 1 December. This was then to be voted on by shareholders at its annual general meeting on 17 December.
The bank highlighted that Mr Spenceley is a successful businessman, entrepreneur and venture capital investor who would bring important experience and different perspectives to the NAB Board.
He is the founder and former CEO of Vocus Communications, the Chair of Airtasker Limited (ASX: ART) and Swoop Holdings Limited (ASX: SWP), and a Non-Executive Director on the boards of Kogan.com (ASX: KGN) and Think Childcare Limited (ASX: TNK).
However, this appointment received some very negative press coverage and appears to have attracted the attention of proxy advisers.
What's the latest?
This morning NAB Chair Philip Chronican revealed that Mr Spenceley has decided not to proceed with his appointment as a NAB Non-Executive Director.
Mr Chronican advised that the decision was made after Spenceley reconsidered his overall commitments after feedback was received from proxy advisors as well as a number of NAB investors.
He explained: "James was selected to bring diversity of experience to the NAB Board and his interest in market transformation. He has advised that he does not want his appointment and other commitments to cause concern for NAB or his other business positions."
"We accept his decision and will consider other candidates for the Board in due course, taking into account the need for Board renewal and breadth of experience," Chronican added.
Mr Spenceley added: "I have received feedback from proxy advisors on the impact of a large Board role on their ability to recommend my election at NAB and my other board positions. I appreciated the NAB opportunity and while I was comfortable with my capacity, I do not want to disrupt NAB, its shareholders or any company I am involved with."
