The Westpac board has amended chief executive Peter King’s employment contract, removing the two-year term. The contract now has a standard 12-month notice period.

Westpac chair John McFarlane said in a statement that the board had held discussions with King, who confirmed that he is committed to a multi-year plan to turn the company around.

King was appointed acting CEO in November last year, following the resignation of Brian Hartzer in response to Austrac’s statement of claim over the bank’s breaches of anti-money laundering obligations.

King, who has worked at Westpac for 25 years, was chief financial officer at the time.

In April, he was appointed CEO with full authority.

King said in a statement on Friday: “We have a significant agenda ahead that requires a longer commitment than two years. I am determined to see Westpac return to a leadership position.”