In the mid-1990s, Richard Laubscher was to South African banking what FirstRand’s Sizwe Nxasana is today. Long-time CEO of the best rated of the Big Four, he had shaped Nedbank into a force so powerful that were it not for the Finance Minister’s intervention, he may have ended up acquiring and merging with the larger Standard Bank Group. So when Laubscher dropped a hint, you listened. As I did after he suggested meeting his star manager, then head of Nedbank’s credit card division, Gail Kelly. Our paths took an interesting turn in 1997 when we bought the Kelly family’s Johannesburg home that they’d put on the market ahead of emigrating to Australia. I learnt much more about Gail Kelly through that process than any formal interview would ever have uncovered. Outside of her stellar career, Kelly raised triplets and while she and pediatrician husband Allan expanded their house to cope with the impending arrivals, lived in a tiny flatlet above the garage. Having seen a glimpse of her determination and discipline, there was never any doubt this superwoman would be successful in her new homeland. But she surpassed even my lofty expectations by shattering glass ceilings and the Australian banking hierarchy rising to become CEO of the Westpac seven years ago. This morning, Gail Kelly announced that she will be stepping down in an orderly hand-over in February. It made the global business news headlines. For perspective, Westpac’s market cap is a trillion rand. That’s equivalent to the combined value of FirstRand, Standard Bank, Nedbank, Barclays Africa, Investec and Capitec – PLUS another R150bn. Gail Kelly certainly moved a long way from Kilkenny Road in Parkview. – AH
From Agence France Presse:
One of Australia’s most powerful female chief executives, Gail Kelly, on Thursday stepped down as the head of banking giant Westpac after seven years in the top job.
Kelly, who became Westpac‘s chief in 2008 and steered Australia’s second-largest bank through the global financial crisis, will be replaced by Brian Hartzer, the firm’s head of financial services.
“The Westpac Group is very well-positioned, with strong momentum and a high-quality team,” Kelly said in a statement.
“This is an excellent time to hand the reins to our next CEO,” she said, adding she had no specific plans for life after she steps down in February, although she expects to continue her work with non-government organisations
Westpac, one of Australia’s big four banks, earlier this month reported a 12 percent jump in full-year net profit to Aus$7.56 billion (US$6.58 billion), driven by growth in lending and customer deposits.
Shares in the bank slipped 1.11 percent to close at Aus$32.96 in Sydney on Thursday.
Kelly said Hartzer was a “proven leader and a wonderful fit for the Westpacculture”. Analysts said shareholders would be heartened by the succession plan after years of speculation about when she would leave.
Kelly, 58, has long been hailed as a trailblazer and was ranked 10th on Fortune’s list of the most powerful women in global business.
She was born in Pretoria and initially worked as a Latin teacher in Rhodesia, now Zimbabwe, before moving back to South Africa with husband Allan to become a bank teller.
Kelly clawed her way up the ranks at South Africa’s Nedcor Bank before moving with Allan and their four children to Australia in 1997.
She joined Australia’s biggest bank, Commonwealth Bank, before becoming the chief executive of St George Bank in 2002. After moving to Westpac in 2008, Kelly oversaw its Aus$18.2 billion merger with St George in the same year.
She went on to become the highest-paid retail banker in Australia, pocketing Aus$12.8 million in the year to September 30, according to Westpac‘s annual report released Wednesday.
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