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Institutional shareholder pressure is likely to have played a part in ANZ Banking Group extending the contract of chief executive John McFarlane to the end of next year and beyond, as they look for his successor.
McFarlane had been set to step aside next September after 10 years in the role, but ANZ said yesterday he will now stay on to December 31, 2007, and possibly into 2008.
ANZ chairman Charles Goode said extending McFarlane's contract gave the bank more time to find a suitable successor.
The three most likely internal candidates for the job are personal group managing director Brian Hartzer, head of institutional banking Steve Target and Bank of New Zealand chief Graham Hodges.
McFarlane said it had always been intended that he leave after the end of his current three-year contract "subject to an orderly transition, and this remains the case".
"The board, the chairman and I are working together to ensure we have the best available successor and an effective handover," McFarlane said.
Aspect Huntley research director Peter Warnes surmised that institutional shareholders could have pressured the ANZ board to extend McFarlane's contract in the same way the Australian Stock Exchange board bowed to SFE Corp shareholders by appointing SFE boss Robert Elstone to head the merged company.
"If it was put to a vote and shareholders were asked who they would like to stay, McFarlane or Goode, I don't think there would be a contest," Warnes said.
"To suggest that McFarlane's use-by date is next September is an ordinary move from a chairman, and I suspect some of the big institutions have rattled the cage."
McFarlane's planned departure had been of some concern to the market, which had been happy with the progress ANZ had made under his guidance.
Burdett Buckeridge & Young banking analyst John Buonaccorsi said there had been uncertainty about McFarlane leaving ANZ. "There are some large shareholders who want him to stay."
- AAP
