Westpac shake-up a boon for removalists

Westpac's chief executive, Gail Kelly, announced some more management changes on Friday that could result in more hefty relocation bills for the bank.

Westpac's chief executive, Gail Kelly, announced some more management changes on Friday that could result in more hefty relocation bills for the bank.

A bit over a year after Rob Chapman moved from Adelaide to Sydney to head up the group's St George division, Westpac announced the Adelaide Football Club chairman was leaving the bank and moving back south.

In the group's 2011 annual report, it was disclosed that Chapman (who was once fancied as a possible successor to Kelly) was paid $613,184 in "non-monetary benefits" that financial year, which mostly went towards his relocation costs.

The former BankSA boss initially seemed destined to make Sydney his home for some time, given the $4.1 million he splashed out for a waterfront apartment in Pyrmont.

The Westpac annual report even shows Chapman's loan balance from the bank jumped from $4.06 million to $7.9 million in the year.

Expect some more relocation expenses in the next annual report, with Chapman's replacement being the head of Westpac New Zealand, George Frazis.

And Frazis being replaced by Westpac's Sydney-based executive Peter Clare. There is also the man now expected to eventually take over from Kelly, the former ANZer and Royal Bank of Scotlander Brian Hartzer, who is moving back to Australia from the UK in the coming months to head up Westpac's financial services operations.


It appears Frazis, who is most famous across the ditch for being New Zealand's highest paid executive, is over renting after recently splashing out $6.45 million for his new abode overlooking Tamarama Beach.

Aside from his fat remuneration package - $3.54 million last year - Frazis attracted headlines in New Zealand last year over a dispute he had with the landlord of reportedly the most expensive rental address in Auckland.

The owner of the rental, the property figure James Kirkpatrick, alleged Frazis had abandoned the $3400-a-week mansion overlooking Auckland harbour.

Kirkpatrick took Frazis to the Tenancy Tribunal seeking $NZ134,000 ($104,185) to cover the remaining 13 months of the two-year lease. The matter was eventually settled for an undisclosed sum, according to a report last year in The New Zealand Herald.


It seems ANZ Private Bank is not as private as some of its clients would like it to be. The bank went into damage control last week after pressing the send button on an email.

The email, which included an invitation to a private banking event, copied in the email addresses of about 100 private clients.

A second email was sent out 14 minutes afterwards recalling it but possibly only drew more attention to the first email.

"We fully understand the concern this caused and apologise to our clients that were impacted," an ANZ spokesman said.

ANZ said it was "investigating how this incident occurred". The spokesman went on: "The staff member involved is clearly devastated by the incident and it is not something he will be repeating."

Maybe banks could train their staff in how to use the "blind carbon copy" (Bcc) address line in an email. The incident comes just one month after St George Bank sent an email which copied in the email addresses of about 500 of its margin lending customers.

"St George Margin Lending is committed to continually improving our services to our clients," the email said.


The former Leighton chief executive Wal King could soon have a few extra pennies to help him through retirement, on top of his $18 million goodbye package from the contracting firm.

The 1 million options King was awarded when he joined the board of the mining services company, Ausdrill, last April are not far off from being in the money.

Ausdrill shares hit an all-time high of $4.15 last week, just short of the $4.21 exercise price of King's options. They closed the week at $3.90.

The first 250,000-strong tranche of options will vest next month, on the first anniversary of King's appointment to the Ausdrill board.

At a shareholder meeting last year, there was a 45 per cent "no" vote against the issuing of the options being awarded to King.

The vote got across the line thanks to the support of Ausdrill's managing director, Ron Sayers, and his 12.3 per cent stake.

Got a tip? srochfort@fairfax.com.au

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles