By Eric Johnston
Retiring Commonwealth Bank chief executive Sir Ralph Norris has labelled his decision to step down as a “bittersweet” moment, as his anointed successor says he will bring a different style and focus to the role.
Incoming chief executive Ian Narev said he was humbled to be nominated to take charge of Australia’s biggest bank from December.
Ralph Norris ... looking forward to a 'less onerous role'.Credit: Rob Homer
“There will be some different style and focus to Ralph - but there will be a strong continuity with the strategy,” Mr Narev told a media briefing.
The 44-year-old former McKinsey & Co consultant said he was taking charge as CBA, like most large banks, were facing significant external challenges.
Meet the new boss ... Ian Narev will take the reins at CBA.Credit: Michele Mossop
This ranges from from ongoing global economic uncertainty; to technology driving competition and bringing about new business models; as well as greater regulatory scrutiny.
Mr Narev has been at the bank since 2007 and led the group's $2.1 billion takeover of BankWest before being moved to lead private and small-to-medium business banking over the past two years.
Sir Ralph nominated pushing through a series of out-of-cycle rate rises as one of the toughest decisions he made as chief executive.
However, the chief executive’s role “is not to be popular” rather it is to make the hard decisions, Mr Norris said.
Despite coming under intense criticism from politicians mostly around last November’s super-sized rate rise, Mr Norris said the bank has worked hard to patch up its relationship with the government.
Indeed, he took a “very gracious call” from Treasurer Wayne Swan this morning on news of his planned retirement.
Sir Ralph said he thoroughly enjoyed his past five years at the bank, nominating a change in the culture of the once government-owned bank toward a more customer focused organisation as his biggest achievement.
“Obviously this day does have a bittersweet flavour but I’m looking forward to a less onerous role as a retiree,” Mr Norris said.
There will be some different style and focus to Ralph - but there will be a strong continuity with the strategy.
CBA chairman David Turner told reporters that planning for Sir Ralph’s retirement began 18 months ago. Last October the bank recruited an executive search firm to benchmark internal candidates against international contenders.
ejohnston@theage.com.au