Key wins six-figure role on ANZ board
ANZ has revealed former prime minister Sir John Key has been appointed to its New Zealand board and will become chairman in January.
‘‘Sir John Key’s strong international career in banking and his understanding of and contacts across the Asia-Pacific – where many Australian and New Zealand companies are increasingly trading – will add great value to the governance of ANZ,’’ ANZ group chairman David Gonski said.
ANZ said that, because it is not a publicly listed company in New Zealand, it does not have to disclose what its directors are paid.
In Australia, the chairman of the ANZ Group board earned A$825,000 in the 2016 financial year.
Massey University banking expert David Tripe said he expected Key to earn $250,000 to $300,000 a year for the role at the country’s biggest bank, at a guess.
‘‘It could easily be 30 or 40 hours’ work a month without too much trouble. It’s certainly likely to be more than just turning up to meetings one day a month. The days when directorships were like that are gone.’’
Key’s experience and financial skills would be valuable to the bank, Tripe said. He would bring credibility.
‘‘He will be reasonably well-connected and people will listen to what he has to say and will be keen to meet him,’’ Tripe said. ‘‘He should also have governance skills and experience and should have some independence of thought in relation to the management of the bank.’’
As part of the role, Key will set the agenda and run board meetings, guide directors and have a relationship with the bank’s chief executive, David Hisco.
He is likely to be involved in Hisco’s performance reviews. Directors also have legal obligations and liability for the running of the company.
Kirsten Patterson, chief executive of the Institute of Directors, said the banking industry was a complex one, with a lot of regulation for the board to navigate. The board would be tasked with building long-term value and delivering for shareholders.
She said Key would be sought after as a director, with international trade experience and a strong understanding of New Zealand’s local conditions.
‘‘I think the experience of running a country is a governance experience all of its own let alone chairing Cabinet.’’
Tripe’s colleague, Claire Matthews, said it was not surprising to see Key in such a position.
‘‘He has a background in financial institutions and as former prime minister he has a whole lot of skills.’’
But she said it was notable whenever someone was brought onto a board and put straight into the chairperson’s position, without an opportunity to serve a term as a director first.
As a subsidiary of the ANZ operation in Australia, the role would have less influence than a standalone organisation, she said.
‘‘That’s not to suggest it’s not important but it’s a subsidiary of a bigger organisation.’’
A graduate of the University of Canterbury, Key started his career in banking and finance in New Zealand before heading overseas where he became head of global foreign exchange with Merrill Lynch. He was also made a member of the Foreign Exchange Committee of the Federal Reserve Bank of New York.
Other former prime ministers have taken board positions. Jenny Shipley is chairwoman of Genesis Energy and was on the board of Mainzeal, while Jim Bolger was chairman of KiwiRail. Key is also on the board of Air New Zealand.