ANZ names Morschel to take over as chairman

SYDNEY: ANZ Banking Group says John Morschel will replace Charles Goode as the bank's chairman, effective from next February.

The bank said the appointment followed Sir Rod Eddington's withdrawal of his offer to join the board and to take up the chairmanship after Goode's retirement.

ANZ announced the Eddington appointment last November.

"We respect [Sir Rod's] decision," Goode said.

"Sir Rod is one of Australia's best known business leaders with extensive international business experience, a strong background in Asia and significant connections with both business and government."

A director of companies including Rio Tinto Group and News Corp, Eddington faced opposition from Rio shareholders at the annual general meeting in April because of his directorship of the failed Allco Finance Group, the manager of infrastructure funds that imploded last year as the global credit crisis drove up debt costs and slashed asset values.

"ANZ and Eddington have dodged some prickly questions and comments at the upcoming AGM and possibly a large protest vote as well," said Stuart Wilson, chief executive of the Australian Shareholders Association.

"Among the shareholder community, there has been some strong opposition to Eddington continuing on the Rio board and I dare say that will be replicated at some of his other board seats."

The departure of Eddington, a former chief executive of Hong Kong carrier Cathay Pacific, gives Morschel the job of overseeing ANZ Bank chief executive Michael Smith's plans to expand in Asia as a jump in bad loans in the bank's home market squeezes profit.

Australia's fourth-largest lender aims to increase the proportion of income it earns in Asia to 20 per cent and is bidding for Royal Bank of Scotland Group's Asian assets.

Eddington, a Rhodes scholar, was appointed by Prime Minister Kevin Rudd last year to chair the Government's Infrastructure Australia Fund.

Allco is the subject of an Australian Securities and Investments Commission investigation, a commission spokeswoman said yesterday. She didn't give further details. A spokesperson at McGrathNicol, the administrator of Allco, declined to comment.

RiskMetrics Group, a corporate governance consultancy, cited Eddington's Allco connection as a reason to vote against his reappointment to Rio Tinto board's three months ago.

Goode, who held the post of ANZ chairman for almost 14 years, said he was "delighted to have John Morschel succeed" him with the unanimous support of the board.

Morschel is a non-executive director of Singtel and Tenix. He was previously chairman of Rinker Group, Leighton Holdings, CSR and Comalco, and a non-executive director of Rio Tinto.

He is a former chief executive of developer Lend Lease, and was an executive director with Westpac Banking Corporation, responsible for retail banking and wealth management.

"John is one of Australia's most respected business leaders," Goode said, "who has extensive experience as a chief executive and more recently as a non-executive director and chairman of major Australian and international companies".

- AAP, BLOOMBERG