The fall-out continues: NAB loses another high-profile executive

Peter Parks/AFP/Getty Images

National Australia Bank has announced the departure of another key executive with chief people officer Lorraine Murphy leaving after just two years with the bank.

Incoming NAB chairman Phil Chronican thanked Murphy for leading the bank’s people division during a “challenging period”.

“Lorraine has brought a significant and diverse history to NAB and we are grateful for her time here,” said Chronican in a statement. “Building a truly customer-centric culture is more important than ever and Lorraine and her team have laid the foundations for us.”

Murphy has been with NAB since March 2016 after getting poached from the same role at Air New Zealand.

The departing executive said she had enjoyed her time at NAB but had reached a “useful point of reflection” to consider her future.

“It is important for the incoming CEO to have members of their leadership team who are utterly committed to the coming years,” said Murphy.

Supplied: NAB chief people officer Lorraine Murphy

Julie Rynski, currently customer executive in NAB’s regional and agribusiness division, will assume Murphy’s responsibilities while a global search is conducted to find her replacement.

Murphy joins chief executive Andrew Thorburn and chairman Ken Henry on the list of high-profile departures from NAB after the bank was singled out during the Banking Royal Commission.

Chronican, who is serving as interim chief executive while NAB searches for a permanent replacement, sent a letter to shareholders this morning in which he addressed the controversy enveloping the bank, the departures of Thorburn and Henry, along with the lender’s rejected executive remuneration policy.

“The enormity of this task is not lost on me, because the Royal Commission is right,” said Chronican. “There is a big gap between where we are today and where we need to be.

“We have let down our customers. We have let down you, our owners. And we have let down the community. We have also let down our people on the frontline who do a great job, day in, day out, serving customers.”

At 12:40 AEST, NAB shares were up less than 0.01% to $25.40, against a 0.34% rise on the benchmark S&P/ASX 200 index.

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