The Bank of New Zealand's managing director and chief executive Andrew Thorburn is to leave the bank to become chief executive of the parent company, National Australia Bank, effective from August.

An announcement on a replacement for Thorburn would be made "in due course,'' the bank said in a statement. Thorburn has been with the BNZ for five and half years.

Thorburn will replace NAB chief executive Cameron Clyne, who will retire in August. Thorburn was born in Australia but moved to New Zealand with his family when he was young.

BNZ chairman John Waller congratulated Thorburn on his appointment.


"The BNZ board sincerely thanks Andrew for his inspirational leadership of the bank at a truly challenging time, beginning in September 2008 as the global financial crisis was unfolding,'' he said.

Under Thorburn's management, BNZ's cash earnings increased from $557m in 2008 to $788m last year. "Deposits increased from $24 billion to $38b, and we've achieved a world class cost-to-income ratio of 40.3 per cent,'' Waller said. In customer satisfaction categories, BNZ was number one or two across the board, he said.

Looking ahead to his new role, Thorburn said that NAB was well-positioned to build on its strengths.

He will take up the new role on Aug. 1, with a base salary of A$2.2 million, with the potential to earn 175 percent of his base salary in the short term if certain targets are met. Over the longer term he has the potential to earn 130 percent of the base salary if his performance beats certain total shareholder return hurdles over a four-year period.

The ASX-listed shares increased 0.4 percent to A$35.56 yesterday, and have increased 2.1 percent this year.

- With BusinessDesk