National Australia Bank (NAB) has appointed New Zealand-born Ross McEwan as group chief executive officer and managing director.
He will join fellow Kiwi and incoming NAB chair from November, Philip Chronican, who has been acting chief executive since February.
McEwan resigned in April from the Royal Bank of Scotland (RBS), where he has served as CEO since 2013.
McEwan will join NAB, which owns Bank of New Zealand, no later than April 2020 and is expected to be invited to join NAB's board. His appointment is subject to regulatory approval.
McEwan was touted as one of four possible contenders to replace outgoing boss Andrew Thorburn, who resigned in the wake of the royal commission in Australia.
Other mooted candidates were Medibank boss Craig Drummond, Westpac executive George Frazis and NAB staffer Mike Baird.
"Ross McEwan is the ideal leader for NAB as we seek to transform our operations and culture firmly around leading customer service, experience and products," Dunedin-born Chronican said.
McEwan, who was born in Hastings, had worked for Commonwealth Bank of Australia, First NZ Capital Securities and Axa before joining RBS.
"Ross brings a compelling range of experience across finance, insurance and investment with a track record of delivering important and practical improvements for customers. RBS has been through many of the same challenges which NAB now faces around culture, trust and reputation," Chronican said.
McEwan will be paid fixed remuneration of A$2.4 million a year to be reviewed annually with the potential to earn up to 150 per cent of his salary on top of that each year with half that paid in cash and the other half vesting over four years.
On top of that, he will get a long-term incentive of another annual grant of up to 130 per cent of salary, subject to performance testing after four years.
Vesting of all variable rewards remain subject to ongoing board review and shareholder approval, the bank says.
Thorburn had fixed remuneration of A$2.3 million and collected a total of A$4.91 million in the year ended September 2018, well below the total available of A$7.94 million and down from A$8.99 million the previous year.
- With BusinessDesk