Costello criticizes Henry for staying on the NAB board

During an update of the Future Fund's portfolio on Monday, Mr. Costello, former treasurer of the Howard Government, said that "the critical point for NAB" was the way the bank had handled its leadership transition.

"The president and CEO have announced their departure, and I think that's fine. As I said, I think both must shoulder their responsibilities, "said Mr. Costello during a phone call with reporters.

"If the NAB behaved well, the president would be the first, then a new president … would appoint the general manager.

"I do not think it's a good practice to have an outgoing president to appoint the CEO, because the first thing any CEO entering NAB will want to know is who he's going to work with.

"So they both took their responsibilities and I'm not sure they managed the transition well," said Costello, president of the owner of this website, Nine.

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Costello also said the fund voted against "inappropriate" executive compensation last year, particularly against AMP and NAB. Mr. Henry was treasury secretary when Mr. Costello was treasurer.

When Dr. Henry announced his resignation last week, he said that he should not be prevented from leading the council's decision to appoint a new executive director.

"I will lead this process, but it will be a decision of the board of directors and I think I am, despite the fact that I will leave the bank in the near future, I do not think that it disqualifies me the qualities of the person we will need to run the bank at the executive level over the next few years, "said Dr. Henry.

A spokeswoman for NAB posed questions to Dr. Henry's previous remark that it was incumbent upon him "to remain for a period of time, to ensure an orderly succession of the Director General" and to "renew the board of directors". ;administration".

Phil Chronican, who will badume the duties of NAB's CEO from next month, also said last week that it was "very difficult" to have a president and a president on leave, and that it was "very difficult" to have a president and a president on leave. it would have been "negligent" for the board not to let Dr. Henry play a leading role in choosing the next CEO of NAB.

Following the royal commission, some wondered whether other changes would be needed at the top of the banks. The former tsar of the competition Graeme Samuel, last week, said that it was "very difficult" for the direction in place to change culture.

Costello has backed the leaders of other big banks, saying that the president and CEO of the ABC had changed in recent years, while ANZ and Westpac "are probably better off" at Royal Commission. He said existing bank executives "should have every opportunity" to change the culture of their organizations.

He also criticized the regulators, saying their problem was not a lack of funding, but that they did not put enough emphasis on law enforcement.

"I do not think it was because they missed a few million here or a few million there, I think there was an attitude, and I think [Commissioner] Hayne found that, there was an attitude they did not want to enforce for any reason, "Costello said.