Westpac Banking Corp (ASX: WBC) CEO Peter King has steered the ship of the big four bank through rough waters over the past two years. However, succession plans have become a key point of business according to reports.
A prepared replacement for the top job of Australia's oldest bank is believed to be well in the works. This follows a significant downfall in the Westpac share price after it published its full-year results at the beginning of the month. Despite a 105% increase to $5,352 million in cash earnings, the Aussie lender missed consensus estimates of $5,420 million.
Shares in Westpac are down ~18% on the ASX since reporting its latest financial results. Though, King's succession plans are believed to have been in the works well before the recent share price weakness.
Let's have a look at the latest details.
Who might be in the running for CEO?
Having been at the helm since the swift departure of previous Westpac CEO, Brian Hartzer, King's replacement is now an important consideration for the company.
According to The Australian, there are whispers that Westpac's institutional bank chief Anthony Miller is a potential candidate for the role. Miller has a career that spans two decades — with senior positions at Goldman Sachs and Deutsche Bank prior to joining Westpac.
Although, another word on the grapevine suggests that chair John McFarlane might look outside of the bank for a CEO successor. At this stage, there are no hints as to whom might be of interest outside of the company.
Another internal potential contender for the top job is rumoured to be the current chief financial officer, Michael Rowland. The former KPMG Australia partner and Australia and New Zealand Banking Group Ltd (ASX: ANZ) CEO has been responsible for the finances at Westpac for over a year now.
The question of who might step in if Peter King were to step down could be a topic of discussion at Westpac's 2021 annual general meeting (AGM). Based on the announcement made to the ASX, Westpac will hold this year's AGM on 15 December at 10 am Sydney time.
Westpac's run on the ASX
Westpac has been the worst-performing of the big four banks since the beginning of the year. From the first day of 2021, Westpac shares have climbed 7.4% in value. Meanwhile, the other big banks are up by more than 10%.
The pain for Westpac shareholders is a recent occurrence. Prior to the end of October, Westpac was a high flyer on a year-to-date basis, notching up a return of more than 30% since the beginning of the year.
However, pessimism towards the ASX-listed lender has reemerged as growth begins to cool off based on its latest results.
