ANZ chairman Sir John Key fronts media over chief executive Hisco's departure
Monday, 17 June 2019
ANZ's chief executive, and the highest paid bank boss in New Zealand, David Hisco had tens of thousands of dollars spent on corporate cars among his expenses, it has been revealed.
Hisco, 55, stepped down several weeks ago, a move the board said at the time was due to health reasons.
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On Monday it was revealed he was leaving the bank and there were also concerns about his personal expenses.
Antonia Watson, who has taken over in an acting role from Hisco, and the bank's chairman, John Key, have spoken to media after Hisco's resignation was revealed.
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Key said tens of thousands of dollars spent on corporate chaffeur cars and wine storage were among the expenses.
The bank's annual report shows he earned total remuneration of $3.123 million in 2018.
He will be paid out 12 months' notice and will not have to repay the expenses.
He will forfeit $6.4m in equity holdings.
'We know the money was spent, the way the money was spent was not accurately accounted in our accounts,' Key said.
'It's a day of shock and disappointment, Hisco was well-liked as a leader,' Watson said.
'David has not met the standards and expectations.'
Key said he was not required to pay the money back and Hisco was adamant he had the authority to spend the money.
'His departure demonstrates when people don't do the right thing we hold them to account.'
The expenses had happened over nine years but because they were miscategorised, they were difficult to pick up, Key said. He said Hisco believed he had authority over expenses so they were not recorded correctly.
He would not confirm whether Hisco resigned or was fired.
'We have to apply same standards to a freshly-minted teller to the CEO. David will say he failed those standards.'
He said Hisco genuinely had health issues but the stress of the investigation had added to that.
The bank has been under pressure in recent weeks.
Key said he had not considered resigning himself.
'It would be inappropriate. Firstly we're not the only bank that has had issues.'
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