Westpac share price tumbles on CEO exit

The big four bank is having a change of leadership.

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The Westpac Banking Corp (ASX: WBC) share price is under pressure on Monday morning.

At the time of writing, the big four bank's shares are down 2% to $31.49.

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Why is the Westpac share price falling?

Investors have been hitting the sell button today for a couple of reasons. One is the broad market weakness caused by another selloff on Wall Street on Friday night.

The other is news that its CEO, Peter King, is stepping down from the role in the coming months.

According to the release, King is retiring after a 30-year career at Westpac, including five years as its leader.

Commenting on King's exit, Westpac's chair, Steven Gregg, said:

Peter has done an outstanding job as CEO of Westpac. He stepped in at a very difficult time in 2019, steering the company through several regulatory challenges and the COVID pandemic.

Since then, Peter has provided much-needed stability to the bank while transforming risk management. He simplified the company's portfolio of businesses and returned it to growth in key divisions. He's now begun the critical task of technology simplification.

Peter's time as CEO will forever be defined by his courage and commitment to Westpac. He leaves a significant legacy and we owe him a great debt of gratitude.

New appointment

The good news is that Westpac has already identified its next CEO.

The release reveals that Anthony Miller will become its next group CEO and managing director, commencing in the role on 16 December. He is currently the chief executive of Westpac's Business & Wealth division.

Gregg believes that Miller is the right person to take the company into a new era. He adds:

Anthony is an exceptional leader. He's an individual of integrity and he's ready to lead Australia's oldest company. He has deep expertise in financial services and global banking and has built a considerable track record of delivery over 25 years.

Anthony is ambitious for the future of Westpac and its customers. Since joining Westpac in 2020, he's put the Institutional Bank on a path to reclaiming its leadership position. He's spent the past year leading Business & Wealth, restoring growth and focusing on customers.

Prior to joining Westpac, Miller was Deutsche Bank's CEO of Australia/New Zealand and Co-Head of Investment Bank, APAC. He also spent 16 years at Goldman Sachs, including as a partner.

Commenting further on the appointment, Gregg adds:

In our search for a CEO, we looked for an executive who is customer-focused with a proven record of performance and a deep understanding of the Australian market. Anthony is that executive.

He has a vision to return Westpac to a position of leadership and build on the foundational work of the past five years. As an internal appointment Anthony knows what needs to be done and will move at pace, ensuring a seamless transition.

The Westpac share price is up 45% over the past 12 months. 21.55

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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