Westpac chairman Lindsay Maxsted has said more board departures would be "very dangerous."Credit:Wayne Taylor
After Tuesday'sdramatic resignations of chairman Lindsay Maxsted and chief executive Brian Hartzer,a key debate in financial markets is whether more director scalps are needed over the mass breach of Australia's anti-money laundering laws.
Some big investors,including the $80 billion superannuation fund UniSuper,say there has been enough blood-letting and are calling for stability. But two proxy firms'calls set the scene for a fiery annual general meeting next month.
ISS and CGI Glass Lewis on Wednesday recommended a vote against the re-election of Mr Marriott,citing the need for accountability over the AUSTRAC scandal. There had also been pressure mounting on board member Ewen Crouch,chair of risk and compliance committee,who on Tuesday said he would not stand for re-election.
In a note to clients,ISS recommended votes against Mr Marriott and Ms Caesar,citing"material governance and risk failures"identified at the 2018 royal commission,and the more recent"serious allegations"about breaches of anti-money laundering laws.
"All members of the board are members of the risk and compliance committee,which is chaired by Ewen Crouch. As such they share in the collective accountability for governance and risk failures,"ISS said.
CGI also recommended a vote against Mr Marriott"on the basis of board accountability for the
AUSTRAC matters",while recommending a vote for Ms Caesar. It was also set to recommend a vote against Mr Crouch before this resolution was pulled by the bank.