News, Culture & Society

NAB shares in a trading halt as it prepares to announce ‘leadership changes’

NAB CEO Andrew Thorburn and chairman Ken Henry sensationally QUIT after damning royal commission report recommended criminal charges for the bank’s behaviour

  • Chief executive Andrew Thorburn and chairman Ken Henry both stepping down 
  • NAB shares were in trading halt as bank prepared to make ‘leadership changes’ 
  • Halt was announced on Thursday amid growing speculation about future of CEO
  • Mr Thorburn was singled out in Kenneth Hayne’s royal commission report  

NAB chief executive Andrew Thorburn and chairman Ken Henry are both stepping down after they were savaged in a royal commission report.

Shares in the bank were placed in a trading halt on Thursday afternoon as the bank prepared to announce ‘leadership changes’.

The halt was announced amid growing speculation about the future of the bank’s chiefs.

Mr Thorburn was singled out in Kenneth Hayne’s final report, which revealed greed and misconduct in the Australian financial sector at the expense of consumers and businesses. 

 NAB chief executive Andrew Thorburn and chairman Ken Henry are both stepping down after they were savaged in a royal commission report

Mr Thorburn (pictured) was singled out in Kenneth Hayne's final report, which revealed greed and misconduct in the Australian financial sector at the expense of consumers and businesses

Mr Thorburn (pictured) was singled out in Kenneth Hayne’s final report, which revealed greed and misconduct in the Australian financial sector at the expense of consumers and businesses

‘I acknowledge that the bank has sustained damage as a result of its past practices and comments in the royal commission’s final report about them,’ Mr Thorburn said in a statement to the Australian Securities Exchange.  

‘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.’ 

Mr Thornburn will finish his role on February 28, while Dr Henry has said he will vacate his position on the board once a replacement CEO was found.

‘The timing of my departure will minimise disruption for customers, employees and shareholders,’ he said.  

Philip Chronician – a NAB director with extensive domestic banking experience – will serve as acting CEO from March 1.

The trading halt was requested pending the announcement by NAB. 

Dr Henry (pictured) said he had agreed with the board change was necessary. 'The timing of my departure will minimise disruption for customers, employees and shareholders,' he said

Dr Henry (pictured) said he had agreed with the board change was necessary. ‘The timing of my departure will minimise disruption for customers, employees and shareholders,’ he said

‘NAB also stands apart from the other three major banks,’ Mr Hayne wrote.

‘Having heard from both the CEO, Mr [Andrew] Thorburn, and the chair, Dr [Ken] Henry, I am not as confident as I would wish to be that the lessons of the past have been learned.’

On Tuesday, Mr Thorburn said he was ‘more determined than ever’ to lead the bank and admitted the comprehensive reported showed their was ‘clearly more work to do’.

‘We are taking steps to earn your trust through action and now we will need to work through this report and implement the recommendations,’ he said.

In an interview with ABC on Wednesday he said he ‘can’t guarantee’ his future. 

The lender’s shares were 1.26 per cent higher when trading was paused at 1514 AEDT on Thursday. 

Mr Henry will appear on ABC’s 7.30 with Leigh Sales on Thursday night.

‘My gues(t) tonight, in his first interview since the royal commission, is NAB chair Ken Henry,’ Ms Sales wrote on Twitter. 

Read more at DailyMail.co.uk