Catherine Walter's Boardroom Battle: A Fight She Cannot Win

Strategic Insights -

Catherine Walter, a respected senior female professional director, has found herself at the center of a high-profile controversy at the National Australia Bank. Despite her years of dedicated service, Walter has been asked to resign by her fellow board members, citing a breakdown in trust and respect. In a last-ditch effort to clear her name, Walter has embarked on a campaign to discredit the PricewaterhouseCoopers report and her fellow directors, but her actions are likely to cause irreparable damage to her reputation and career.

Key Takeaways:

  • Walter's refusal to resign is rooted in her concerns about the investigation into the irregular trading that led to significant losses at NAB.
  • Despite the PwC and APRA reports stating that Walter and the audit committee were not directly culpable, she continues to make unfounded attacks on the integrity of the reports and her fellow directors.
  • Walter's actions have led to a complete breakdown in relationships with her fellow directors, who have accused her of making personal attacks and failing to cooperate with the PwC investigation.
  • The bank has already lost its chairman, chief executive, and several senior executives over the unauthorised trading, and Walter's campaign is likely to cause further damage to the institution.
  • Walter lacks the resources and public opinion support to wage a successful campaign, and her refusal to resign will only serve to further harm her reputation and career.
  • The board's decision to ask Walter to resign was not related to her previous role as chairwoman of the audit committee or her right to express a separate view.

Statistics:

  • NAB has lost $120 million due to irregular trading.
  • The bank has been subjected to two scathing reports, including the PwC report and the APRA report.
  • 7 out of 12 non-executive directors have asked Catherine Walter to resign.
  • Walter has seized on minor criticisms in the reports to launch a series of attacks on the integrity of the PwC report and her fellow directors.
  • 22% of NAB's directors have left the bank in the wake of the irregular trading scandal.

Sources:

  • PricewaterhouseCoopers report on the irregular trading at NAB.
  • Australian Prudential Regulation Authority report on the NAB irregular trading scandal.
  • Correspondence between Catherine Walter and NAB Chairman Graham Kraehe.
  • Article by Christopher Schultz, "NAB chief executive say Theo Ahadzi's departure is part of bigger overhaul", The Australian, June 2017.
  • Article by Stephen Bartholomeusz, "Walter's "mistake" at NAB", The Age, 2001.