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Grimshaw's move sets off CEO selection season in Australia

14 August 2014 4:20PM
The leadership talent supply pipeline in the bank sector is in the spotlight, with two chief executives felled yesterday.Stuart Grimshaw is scurrying off from Bank of Queensland for a US gig in a move that has taken his own board by surprise. He'll be walking away from the bank at the end of this month for Austin, Texas, to take up a role as executive chairman of EZCorp, a NASDAQ-listed payday lender and pawnshop chain. (As an aside: EZCorp owns a chunk of Cash Converters, the multinational ASX-listed pawn-broking lender and retailer of second-hand goods.)One part of the narrative left out of EZCorp's US media release announcing Grimshaw's appointment was that it follows the removal, a month ago, of EZCorp's chief executive, Paul Rothamel, along with chairman William Love and board member Joseph Beal (the latter two also being board members of Cash Converters) by the company's majority shareholder, Australian-born New York-based investor Phillip Ean Cohen. Grimshaw's rapid departure from BoQ means he leaves a work in progress, halfway through a turnaround phase that has seen its market cap more than double, but with Virgin Money yet to make any progress under its new owner and the Investec equipment leasing and "private banking" deal only recently completed.According to a report on the Courier Mail's website last night, Grimshaw is leaving far sooner than the six-month's notice required by his contract, and is likely to keep $4 million in long-term bonuses that will vest if future hurdles are met in his absence. That last task will be in the hands of a management team liberally sprinkled with Grimshaw's ex-CBA colleagues. Jon Sutton, an ex-Bankwest CEO and former head of rural and agri banking at CBA, has been BoQ's chief operating officer for more than two years. He will act in the job while a more extensive search is run, and is an early favourite to succeed Grimshaw.Further south, CBA is losing the CEO of its Aussie Home Loans portal, Ian Corfield, who becomes another ex-Bankwest executive who has moved on (see our separate report).And, as previously reported, Peter Clare finally officially moved on from Westpac NZ on Monday.Gail Kelly, Clare's boss, must also be counted among the soon-to-be-departed bank CEOs.The conversation on the Westpac board over a new CEO is headed for its third year, and won't be put off for ever.(Additional reporting by Bernard Kellerman)

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