Gail Kelly has this morning announced she is stepping down from her role leading Westpac. Kelly became the first female CEO of one of Australia’s big four banks in 2008 and will be replaced by Brian Hartzer, Westpac’s Australian financial services chief executive, from February next year.
“Gail is one of Australia’s most successful CEOs,” Westpac’s Chairman Lindsay Maxsted said. “She was appointed as the global financial crisis was unfolding and her leadership and dedication has seen Westpac emerge as a stronger and better company.”
Kelly helped increase Westpac’s shares by 18.8%; at the start of 2008 shares were trading at $28.06, compared at close on Wednesday with $33.33.
“During her tenure the value of the company has more than doubled, with market capitalisation increasing from just under $50 billion to around $104 billion” said Maxsted.
Kelly said that Westpac’s results from earlier this month, a reported record of $7.6 billion profit, shows that now would be a suitable time to hand things over to the next CEO.
“I’m delighted Brian Hartzer has been appointed to the role. Brian and I have worked closely during the past two and a half years. He is a proven leader and a wonderful fit for the Westpac culture,” said Kelly. “This is an exciting time for the group.”
It comes on the same day news confirmed Kelly is in fact the highest paid banking executive in Australia, taking home $12.8 million last year. Her fixed pay was just over $3 million, with her short-term cash incentives $2.74 million and during the year vested $7 million worth of previously issued performance shares.
Kelly hinted towards a change in March 2011 when asked about her future: “The next three years I am really looking forward to because it will be about delivering on the strategy and the road map that is set out for us.”
She has had an extraordinary career. In 2010, Forbes ranked Kelly the 8th most powerful woman in the world and this year she is ranked as 56th most powerful woman in the world. In 2005 she was Australia’s highest paid female.
Kelly was born in Pretoria, South Africa, and moved to Australia with her husband in 1997. She began her career in Australia as Strategic Marketing Manager in the Commonwealth Bank the same year. By 2002, she was head of the Customer Service division responsible for running the extensive branch network at the Commonwealth Bank.
She was the recruited as CEO of St George bank, where she increased profitability, and won the Australian Banking & Finance magazine Award for Best Financial Services Executive in both 2003 and 2004. Kelly moved to Westpac in 2008, where she has been CEO ever since.
Kelly is also the chair of the Australian Bankers’ Association and a non-executive director of the Business Council of Australia and The Financial Markets Foundation. She is also CARE Australia’s ambassador for Women’s Empowerment, and serves on the Prime Minister’s Indigenous Advisory Council.
On an international level, Kelly is Vice president of the international Monetary Conference, siting on the Global Board of Advisers at the US Council on Foreign Relations, and is a member of the Group of 30.
She is also the mother to four kids.
Gail Kelly is an inspiration to many and what she does next will be exciting to see.
The President of the Chief Executive Women, Christine Christian has paid tribute to Kelly’s tenure at Westpac.
“Chief Executive Women’s mission as an organisation is to enable women leaders. We are proud of the achievements of all members, but Gail Kelly stands as a beacon of what women are capable of achieving as leaders.
“Almost single-handedly, this outstanding leader has shown women in corporate life both here in Australia and around the world what is possible.
“Gail was the first woman appointed chief of one of the big four banks, and the business world had never had a woman leader of that stature before. Her achievements in that role are rightly being celebrated today. She performed superbly as a chief executive, taking the business to a new level at the same time as improving the workplace participation of women throughout her organisation.
“She has been at the top of international power lists for years, and it is great credit to her that she wielded power in a manner that has paved the way for other women to pursue leadership at all levels.
“Gail has shown women that if you are prepared to take risks, to have the confidence to express your ambition and the talent to back it up, you can achieve the ultimate.”