National Australia Bank Hires BofA’s Craig Drummond as CFO
He will join NAB by the end of the year and replaces Mark Joiner who retires after seven years with the lender, the Melbourne-based bank said in a stock exchange statement. Drummond most recently headed Australian operations at Bank of America’s Merrill Lynch unit, according to the filing.
Chief Executive Cameron Clyne is changing senior executives at the lender as part of his plan to boost its Australian business and shrink its U.K. unit. He is also cutting management roles to trim spending as Australian banks struggle with slow corporate loan growth.
Drummond “adds to the bench strength in NAB’s senior executive ranks,” said David Ellis, a Morningstar Inc. (MORN) banking analyst based in Sydney. “He obviously has many years experience in financial markets, which is a positive for NAB’s growth strategy.”
Drummond, 52, who led Bank of America Merrill Lynch Australia for the last four years, joins NAB on the same pay package as Joiner and will be compensated for deferred employment incentives worth A$6.5 million ($6 million), which he will forfeit by leaving his current role, the lender said. Joiner earned total remuneration of A$3.7 million in the year to Sept. 30, 2012, according to NAB’s annual report.
“A number of years in the role will ensure he is very well positioned for a potential promotion as CEO at some stage in the future,” said Ellis. Clyne, 45, took the CEO position in January 2009.
The Australian Financial Review reported in April that NAB executive and general manager positions will be cut to 50 from 60, citing unidentified sources. Some changes have been made to the senior management team to “better align the business to the changing external landscape,” Brian Walsh, a spokesman for the bank, said at the time.
NAB’s first-half business banking profit fell 1.9 percent from a year earlier as slowing Australian economic growth curbed credit demand. The division holds a market-leading 25 percent share of Australia’s corporate lending.
To contact the reporter on this story: Narayanan Somasundaram in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Chitra Somayaji at email@example.com