NAB Boardroom Crisis: Malcolm Williamson Appointed as Director, Hope for Resolution

Strategic Insights -

The hopes of resolving the National Australia Bank boardroom crisis have been raised after the appointment of Malcolm Williamson as a director. Insiders predict that the next 48 hours will be crucial in finding a face-saving formula that allows dissident director Catherine Walter and the seven non-executive directors to avoid an extraordinary general meeting on May 21. The crisis has been centered around the future of board members Kenneth Moss and Geoffrey Tomlinson, who have heavy responsibilities outside NAB, and Edward Tweddell, who was on the board during the $3.5 billion HomeSide debacle.

Key Takeaways:

  • Malcolm Williamson, former Visa International president and CEO, has been appointed as a director at National Australia Bank (NAB), raising hopes for a resolution to the boardroom crisis.
  • Catherine Walter's campaign has shifted from criticizing the board and the report into currency losses to finding a way to "quickly and effectively" resolve the crisis.
  • Talks appear to be centered on the future of board members Kenneth Moss and Geoffrey Tomlinson, who have heavy responsibilities outside NAB, and Edward Tweddell, who was on the board during the $3.5 billion HomeSide debacle.
  • Chairman Graham Kraehe would also have to set a resignation date.
  • A report by Institutional Analysis Research found that Catherine Walter's most serious claims against the board were inconclusive and that she produced no evidence.
  • The report also criticized Walter for being part of the problem, having breached board collective accountability and being disruptive in the board renewal.
  • If an extraordinary general meeting (EGM) is held, many pension fund trustees may vote directly on the resolutions rather than delegate to their fund managers.

Statistics:

  • $3.5 billion: The amount of HomeSide debacle
  • $360 million: The currency losses incurred by NAB
  • Over $65 billion: The amount of funds under management by the Australian Council of Super Investors
  • 30: The number of superannuation funds with more than $65 billion under management that are members of the Australian Council of Super Investors
  • 7: The number of non-executive directors involved in the crisis, including Catherine Walter
  • 2 days: The length of the board meeting starting on Thursday
  • May 21: The date of the extraordinary general meeting (EGM)

Sources:

  • Institutional Analysis Research report (no publication date mentioned)
  • Phillip Spathis, Chief Executive of the Australian Council of Super Investors
  • "National Australia Bank rejects calls to sack board", article by Duncan Hughes in [Australian Newspaper] (no specific date mentioned)