ANZ may have to search for a new successor with the requisite experience in Asia to replace Charles Goode as chair of the bank's board, with widespread reports that Rod Eddington, his designated replacement, is thinking of backing out.
Eddington's excuse may be workload; he is a director of Rio Tinto and News Corp. But his involvement as a director of Allco Finance Group and the Allco board's approval of the ill-fated takeover of Rubicon in 2007 combined with increasing scepticism by institutional shareholders over his suitability because of the Allco legacy mean that Eddington may not take up the ANZ job.
The Australian reported Eddington has effectively put the decision on hold pending further discussions with Goode and his ANZ colleagues. Follow up media reports reinforce the likelihood that Eddington may take up the job at the bank.
The withdrawal of David Clarke, the former CEO of Allco and the CEO-designate of Investec Bank in Australia, from election to the board of AMP provided a trigger for the fresh speculation over Eddington's appointment to the board of ANZ. Clarke withdrew his name as a candidate for the AMP board hours before advisory firm RiskMetrics was due to publish a report to its clients (all institutional shareholders) recommending against a vote for Clarke on the basis of the Rubicon takeover.