Just four months after Bank of Queensland (ASX: BOQ) announced George Frazis was stepping down from the top job, the company has looked within its own ranks to appoint executive chairman Patrick Allaway as its new CEO until December 2024.
In an announcement to shareholders today, BOQ said Allaway’s appointment would provide stability and continuity during this period, enabling the management team to continue delivering on the company’s priorities of digitising and optimising the Brisbane-based bank.
Prior to becoming BOQ’s chairman in 2019, Allaway held executive roles at Citibank and UBS, as well as non-executive board positions at Metcash (ASX: MTS), Fairfax Media, Woolworths South Africa, David Jones, Country Road Group and Nine Entertainment (ASX: NEC).
From today, former investment banker Warwick Negus, who was appointed as BOQ director seven years ago, will replace Allaway as chairman. Negus, who spent nine years at Goldman Sachs before becoming CEO of Colonial First State Global Asset Management and 452 Capital, is also chairman of Dexus (ASX: DXS) and Pengana Capital Group (ASX: PCG).
The company also confirmed the search for a long-term CEO will continue to allow further time for consideration of a wider pool of external candidates and the development of internal candidates.
Allaway’s total fixed remuneration has been set at $1.5 million per annum, plus share-based incentives that could take his pay packet up to $4.5 million.
“I am honoured to serve BOQ stakeholders in my new role and to play a part in our 150-year history,” Allaway said.
“I will continue to lead by living our purpose and values and to progress our work to build an even stronger and better bank for our customers, our people, and our shareholders. Our focus is strong financial resilience whilst simplifying our operations and digitising for our future state.
“We have made material progress in strengthening our capital and liquidity position over the past six months and have maintained quality lending portfolios as we prepare for a more challenging economic environment.”
Today marks the fourth time in a decade the bank has seen a change in leadership, with former CEO Frazis succeeding Jon Sutton after the latter announced he would resign from his position in December 2018 to focus on his long-term health following a triple heart bypass surgery.
Prior to his three-year tenure at BOQ, Frazis spent 10 years in executive roles at Westpac Group (ASX: WBC), including chief executive of Westpac's Consumer Bank which accounts for the majority of the group's revenue, as well as CEO positions with its subsidiaries St George Banking Group and Westpac New Zealand.
Under his leadership, BOQ was able to double the size of its retail offering after acquiring ME Bank for $1.33 billion in a deal that was finalised in June 2021.
Before Sutton’s appointment in 2014, Stuart Grimshaw served as the company’s CEO for three years before he left to take up a non-banking opportunity outside of Australia.
Prior to taking charge of BOQ, Grimshaw was CEO of boutique investment fund Caledonia, and also spent seven years at the Commonwealth Bank of Australia (ASX: CBA) as well as four years at National Australia Bank (ASX: NAB).
Shares in BOQ are up 1.09 per cent to $6.47 per share at 11.15am AEDT.
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