ANZ appoints fill-in as permanent chief
ANZ Bank New Zealand has announced Antonia Watson as the company’s chief executive officer.
She has been covering the role since the departure of David Hisco in June.
He resigned amid concerns about the way he had characterised personal spending on chauffeur-driven cars and wine storage.
Watson had previously been managing director of the bank’s retail and business banking sector.
It has been a challenging position. ANZ has been the subject of several Reserve Bank reviews, including into the circumstances around the sale of a house bought for Hisco and his family to live in.
The bank sold it to his wife six years later for less than it originally paid.
ANZ group chief executive Shayne Elliott told this year’s annual meeting the decision to part ways with Hisco had been the right one ‘‘and sent the right message to our people’’.
Watson was a director of Arawata Assets, the ANZ company involved with the Hisco house sale.
Sam Stubbs, founder of KiwiSaver provider Simplicity, which has been critical of ANZ’s handling of questions over the sale, said Watson’s appointment would not bring the reform the bank needed.
He said it would have been preferable for ANZ not to appoint someone who was part of the ‘‘old guard’’.
‘‘An outsider, bringing a fresh perspective, would have been our preferred choice. And the sale of a house to David Hisco at a price well below the QV valuation at the time remains highly suspicious, and she signed off on it. We are continuing to pursue public disclosure of the valuations on behalf of all shareholders. It was, after all, shareholder money that kept Mr Hisco in such lavish circumstances.’’
Deloitte found in its report for the Reserve Bank that the sale did not breach ANZ policies or highlight system weaknesses in the attestation framework. The price was set on the basis of independent valuations, it said.
Claire Matthews, a banking commentator at Massey University, said the appointment was not a surprise.
‘‘I don’t believe her directorship with Arawata Assets at the time of the Hisco sale is an issue, particularly given the recent Deloitte review concluded it did not breach ANZ policies – the only issue with the sale appears to have been the lack of disclosure, and in her former role as managing director of retail and business banking it is not clear she would have had any role in the nondisclosure,’’ Matthews said.
‘‘I note the comments from others about the need for fresh blood and externally that may be desirable but that is not necessarily what the bank would be looking for. In addition, given it is a subsidiary, there are constraints on the ability to be truly innovative so I am not sure an outside appointment would have really provided the anticipated benefits.’’
While Hisco was paid $2.8 million last year, Watson took on the role on a base salary of $800,000 although there was the potential for her to earn incentives three times that.
ANZ New Zealand board chairman Sir John Key said Watson was an ‘‘outstanding applicant’’.
‘‘Antonia is a warm, empathetic and inclusive leader who is also methodical in her thinking and forensic in her analysis,’’ he said.
‘‘Most importantly she is authentic – what you see is her and she will be upfront and honest with you.’’
Key said ANZ faced challenges, such as significantly increased capital, more regulation and regulatory oversight, higher customer and public expectations of financial institutions, and increasing competition from new entrants to the industry.
‘‘The board is confident Antonia has all the skills to help ANZ NZ navigate this new environment and ensure the bank flourishes.’’
She is the first New Zealand woman to lead the bank.
Watson joined ANZ in 2009 as financial controller before becoming chief financial officer in 2012.