NAB Group chief executive officer Cameron Clyne will step down from his position from the start of August this year and will be replaced by Bank of New Zealand managing director and chief executive Andrew Thorburn.
Clyne will also step away from his role as managing director of NAB Bank and stand down from the board, having been in the lead roles since 2007.
Clyne said he was resigning to spend more time with his family and that while leading the NAB group had been rewarding, it had taken a personal toll and he would now retire from executive life.
National Australia Bank Limited board chair Michael Chaney said Clyne was integral to the changes which the bank had gone through since the global financial crisis and remained highly regarded throughout the group.
The announcement of Clyne's departure and Thorburn's appointment was made this morning to the Australian Stock Exchange by Chaney.
He said that Thorburn's appointment was still subject to regulatory approvals and he would be invited to join the NAB Board but would do so on a reduced salary compared to Clyne.
Chaney stated: "The Board and the Remuneration Committee believe that, in the current market, it is appropriate for the incoming Group Chief Executive Officer to start on a lower package than the current incumbent. Mr Thorburn is supportive of this decision.
"The package on appointment aligns with our pay for performance philosophy. It is strongly aligned to shareholder expectations with 70 per cent of the total package being ‘at risk'. This ensures that remuneration will not be earned until there is genuine individual and organisational performance."
Thorburn will be offered a base salary of $2.2 million as well as a short-term incentive of 100 per cent of the base salary, plus a long-term incentive of 130 per cent of base salary.
