Updated ,first published
Macquarie Group chief executive Shemara Wikramanayake is retiring as boss of the investment giant after eight years in the job, to be replaced by the head of its banking and financial services arm, Greg Ward.
The investment bank on Thursday said Wikramanayake, who is 64 and has been chief executive since late 2018, will retire from November this year.
Wikramanayake will walk from the top job with shares currently worth more than $880 million after close to 40 years with the financial giant.
According to her most recent directorโs shareholding notice filed with the ASX, Wikramanayake held more than 3.47 million Macquarie shares which closed at $254.93 on Wednesday.
Wikramanayake also retains another 440,000 performance rights over shares that may vest in the future depending on the groupโs performance.
Wikramanayake said on Wednesday she was leaving at the right time for both her and Macquarie.
โIโve always said Iโm here as long as Macquarie needs me, and I think the business is in great [shape] now, and I think the board has chosen a great next CEO in Greg, who Iโve worked with for 30 years, not just in the awesome work heโs been doing with the team in BFS (banking and financial services), but also as CFO through things like the GFC,โ she said.
Sydney-based Macquarie is colloquially known as the โmillionairesโ factoryโ for its high pay packets and culture that rewards financial performance.
Last year Wikramanayake was awarded $26.5 million in pay, less than the $35.4 million paid to the executive in charge of its booming commodities business, Simon Wright. Ward was paid $13 million last year.
Under Wikramanayakeโs leadership Macquarie has expanded substantially in domestic banking but remains a global business at heart, earning about two-thirds of its revenue overseas.
Its market capitalisation has risen from about $39 billion when Wikramanayake started in the job to about $98 billion.
Macquarie chairman Glenn Stevens also dropped a potential bombshell on the KPMG scandal, telling shareholders the group is reviewing the embattled firmโs capability to deliver on the lucrative Macquarie audit tender it won last year due to the exodus of senior staff over the scandal.
Macquarie has also instigated an external review of KPMGโs pursuit of the groupโs audit contract which was worth $69 million last year.
โThe board has made formal inquiries of KPMG, and they include regarding KPMGโs ongoing capability and capacity to deliver the audit, given that some people have left that firm, and an assessment of the integrity of KPMGโs pursuit of our audit tender process,โ Stevens said.
โThatโs to be supported by an external review conducted by Allens, with a scope that has been agreed by Macquarie management. Weโll keep shareholders informed as this matter unfolds over the period ahead.โ
Allens is the same law firm which is currently investigating – on behalf of KPMG – the whistleblower claims that senior audit partners illicitly accessed client information to win new customers.
The Macquarie contract was one of the tenders mentioned in the allegations.
Stevens continued to defend the integrity of Macquarieโs tender process and the role of former KPMG partner Michelle Hinchliffe, who heads Macquarieโs audit committee.
โWe remain confident that the process that we ran was a robust one, and that we found the right balance between using Michelleโs highly developed skills, which are very beneficial for the company and very beneficial in ensuring we have a good tender, and managing her potential conflicts resulting from her previous employment, which were all fully disclosed and managed.โ
Macquarie shares rose 0.5 per cent on Thursday morning as the bank also provided a first-quarter update, saying trading conditions had been โsatisfactoryโ.
Citi analyst Thomas Strong said Ward was a logical choice for Macquarie, saying he was well known and regarded in the market and the banking and financial services division had been a strong success story within Macquarie.
โOverall, given the internal appointment we expect a smooth transition,โ Strong said.
Stevens said: โThe board extends its heartfelt thanks to Shemara, who leaves Macquarie in a strong position, with sustained growth across each of our diverse businesses and a highly capable senior team.โ
โOver her last eight years as CEO, and for almost four decades with the company, Shemara has steered Macquarie through expansion into new markets, the dislocation of the COVID pandemic, and significantly enhanced recognition of our brand and the value we bring to global clients and communities.
โIn considering the transition from Shemaraโs groundbreaking tenure, the board is pleased to have an experienced candidate of Gregโs calibre to lead Macquarie through its next phase of growth and looks forward to working with him as he brings his global experience and proven ability as a business and technology leader to build on this momentum in the years ahead,โ Stevens said.
Ward, 58, is a Macquarie veteran who has run the banking and financial services arm of Macquarie, which houses its rapidly growing retail bank, since 2013. He joined Macquarie in 1996 and previously served as chief financial officer for 14 years.
Under Wardโs leadership, the retail bank has aggressively taken on the big four in home loans and deposits, investing heavily in its technology platform and expanding to become the fifth-biggest bank in the country.
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Clancy Yeates is deputy business editor. He has covered banking and financial services, and was previously national business correspondent in the Canberra bureau.Connect via X or email.
Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.From our partners
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