Westpac chairman Lindsay Maxsted said it was in the best interests of the company if chief executive Brian Hartzer stays.Credit:Wayne Taylor
“This chairman,and this board,fully understands that we’re here to act in the best interests of the company. We think at the moment,given that we have no direct evidence of failure by the CEO,and given we think he does a very,very good job and given that we think stability is really important at all times but particular through a crisis like this,it is far and away in the best interests of the company for Mr Hartzer to stay.”
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However,there was a caveat before crucial meetings with investors and influential proxy advisers this week that could determine the fate of the bank's chairman and chief executive.
“But we also know,on the other hand,that if our investors and the community and everyone that’s interested in this says:'Well the mere fact of his staying is more destabilising',then we’re in a different world. We’re not there yet,we don’t think that’s right.”
Westpac's leadership has been thrown into turmoil by a money-laundering compliance scandal,including bombshell allegations it breached money-laundering laws 23 million times. The regulator AUSTRAC says the bank failed to report millions of payments from overseas and did not properly vet thousands of payments linked to child exploitation.
Mr Maxsted's statements came asTreasurer Josh Frydenberg raised the pressure on Westpac and revealed that the Australian Prudential Regulation Authority would also launch an inquiry into the bank.