Sir John Key's ANZ position 'about one week's work a month'
Wednesday, 18 October 2017
Sir John Key can expect to earn at least $200,000 for about 40 hours' work a month as chairman of the ANZ board in New Zealand, industry commentators say.
It was revealed on Wednesday that he had been appointed to the board of the bank and would take over as chair in January.
ANZ said, because it is not a publicly listed company in New Zealand, it does not have to disclose what its directors are paid. In Australia, the chairman of the ANZ Group board earned A$825,000 in the 2016 financial year.
Banking expert David Tripe, of Massey University, said he would expect Key to earn $250,000 to $300,000 a year for the role, at a guess. As prime minister, he earned $459,739 a year.
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'It could easily be 30 or 40 hours' work a month without too much trouble. It's certainly likely to be more than just turning up to meetings one day a month. The days when directorships were like that are gone.'
Key's experience and financial skills would be valuable to the bank, Tripe said. He would bring credibility.
'He will be reasonably well-connected and people will listen to what he has to say and will be keen to meet him,' Tripe said. 'He should also have governance skills and experience and should have some independence of thought in relation to the management of the bank.'
As part of the role, Key will set the agenda and run board meetings, guide directors and have a relationship with the bank's chief executive, David Hisco. He is likely to be involved in Hisco's performance reviews. Directors also have legal obligations and liability for the running of the company.
Tripe's colleague, Claire Matthews said it should be possible for a non-executive director to hold two chair positions and a couple of other board positions. Some professional directors hold as many as a dozen roles but that is often criticised as too many to do the job properly.
Kirsten Patterson, chief executive of the Institute of Directors, said the banking industry was a complex one, with a lot of regulation for the board to navigate.
The board would be tasked with building long-term value and delivering for shareholders.
She said Key would be sought-after, with international trade experience and strong understanding of New Zealand's local conditions.
'I think the experience of running a country is a governance experience all of its own let alone chairing Cabinet.'