McLean named permanent Westpac NZ CEO

Westpac has appointed local institutional banker David McLean as its permanent New Zealand chief executive after eight months acting in the role. The appointment ends a six month search across the rest of the bank and overseas.

McLean, a New Zealander with a background in institutional and investment banking in New Zealand and New York, was appointed to the full acting role in August last year after then CEO Peter Clare resigned in the aftermath of a heart operation.  McLean had been standing in for Clare since May last year.

Group CEO Brian Hartzer said McLean had done an outstanding job in the acting role and he was pleased to appoint someone who was well known in the New Zealand business community. Westpac had said it would conduct an internal and external search for the permanent CEO's role.

"It is important to me that someone with such in-depth knowledge of the business and local market will be taking on this critical role for the Group," Hartzer said.

The permanent appointment of McLean may have surprised some expecting an Australian with retail banking experience to get the role, given the New Zealand CEO role is often seen as a perfect training ground for group chief executives and retail bankers often get the nod. New Zealand's institutional banking market is also relatively smaller than it is in Australia, given New Zealand bank assets are dominated by residential and farm mortgages.

Although an Australian, Clare's departure after just two years in the job surprised many in New Zealand, given he had pledged to be a long-term chief executive in New Zealand. Clare's wife is a New Zealander and Westpac had been through four chief executives in New Zealand since 2007.

Clare's predecessor, George Frazis, went on to become the chief executive of St George Bank after a four-year stint in New Zealand. The last two chief executives of National Australia Bank's BNZ, Cameron Clyne and Andrew Thorburn, have gone on to head up the NAB group.

McLean came to the acting CEO role from being Westpac Institutional Bank's Head of Americas division. He had previously been the head of Westpac New Zealand's institutional and private wealth management operation.

Other local candidates are thought to have included Westpac NZ's Head of Business Bank, Private Bank, Wealth and Insurance, Simon Power, who came to Westpac from a career as cabinet minister in the current National Government. Previously touted as a future Prime Minister, Power left politics in 2011 after stints as Justice and Commerce Minister.