Westpac CEO Peter King (left) with chairman John McFarlane.
On Wednesday,McFarlane told shareholders he would retire at next year’s annual general meeting,saying the bank had recovered from a period of market share losses,and become a more “leaner” and more “agile” company after extensive restructuring. In recent years,Westpac has sold its insurance business,largely completed an exit from wealth management,and cut the number of international locations.
“Following two-and-a-half years of repositioning and restructuring,Westpac is now in good strategic and financial shape for the future,” McFarlane told shareholders in Melbourne.
“Considerable progress has also been made in the simplification of the group,in lowering the cost base,and in addressing risk and cultural issues.”
The company has not picked a replacement for McFarlane,but he said it would have time to appoint a new chairman in an orderly way,and it had also started looking for new directors on the board.
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McFarlane flagged his exit during a four-hour shareholder meeting in which climate change loomed large. Climate activists repeatedly interrupted speeches by McFarlane and chief executive Peter King,laughing loudly over the two bankers’ remarks on climate,which caused the meeting to be briefly halted while several people were removed from the venue.
McFarlane and King also faced repeated questions from shareholders over a resolution from activist group Market Forces calling on the bank to show how its funding would not be used to expand fossil fuels. The resolution was supported by 9.7 per cent of proxy votes.