New chairman for Kiwibank

Banking

Former ASB deputy chairman and experienced company director Jon Hartley set to succeed Susan Macken as Kiwibank chairman

8th Nov 19, 12:42pm by Gareth Vaughan

Jon Hartley, a former deputy chairman of ASB, is set to succeed Susan Macken as Kiwibank chairman from late November.

Kiwi Group Holdings Limited, Kiwibank's immediate parent company, says pending no objection from the Reserve Bank, Hartley will takeover from Macken on November 28.

In a statement Jackie Lloyd, who chairs Kiwi Group Holdings, says Hartley brings 44 years of experience in business and banking in New Zealand, Australia, the United Kingdom and Africa to the role.

“Jon has considerable governance and commercial expertise, including as Deputy Chair of ASB Bank, where he was on the Board for 12 years, and 17 years of international banking experience with VisionFund International – the microfinance subsidiary of World Vision International – where he has just retired as Chair,” Lloyd says.

“The Board and management of Kiwibank will benefit greatly from Jon’s experience, leadership and insights as it implements its strategy of ensuring more Kiwi families and businesses choose to partner with a New Zealand-owned bank.”

English-born and Wellington-based Hartley is chairman of Timberlands, the manager of the Kaingaroa Estate and the Wellington City Mission and is deputy chairman of Chorus. He has also chaired SkyCity, been deputy chairman of ASB and Sovereign Assurance Company, director of Mighty River Power and Air New Zealand, a trustee of World Vision New Zealand, CEO of Brierley New Zealand and Solid Energy, and chief financial officer of Lend Lease in Australia. Hartley is a Fellow of the Institute of Chartered Accountants in England and Wales, an Associate of the Australian and New Zealand Institute and Fellow of the Australian Institute of Company Directors. Hartley is also ordained in the Anglican Church.

Macken, a company director and business consultant, was appointed to Kiwibank's board as an independent director for a three-year term in November 2016, becoming chairman in April 2017. Her resignation is effective from November 28.

“My focus was to ensure more New Zealanders – and New Zealand businesses – chose to bank with Kiwibank, and to put in place a business strategy that would meet the changing needs of Kiwis,” Macken said in a statement.

“I am proud of the significant progress the Board has made in delivering on those priorities and our appointment of Steve Jurkovich as Chief Executive in 2018. Kiwibank is investing in standalone branches, developing technological capabilities to meet the needs of customers, and focused on helping more families and businesses with their long-term financial wellbeing.”

“It is pleasing to see our strategic and management changes being endorsed by the market, reflected in the bank’s ‘A/A-1’ ratings being affirmed by S&P. Their positive outlook on Kiwibank’s future aligns with our own, focusing on a clear and solid strategy, particularly around our technological capabilities,” Macken added.

“With board appointments due to be confirmed in November, I reflected on the changing nature of the governance requirements as the bank evolves. I decided Kiwibank would best benefit from a chair with the specific skills to lead them in this new chapter, and informed shareholders and the Board last month I would not be seeking reappointment."

Kiwi Group Holdings is owned by the New Zealand Government through New Zealand Post with a 53% shareholding, the New Zealand Superannuation Fund with 25% and the Accident Compensation Corporation with 22%. The Super Fund and ACC bought their stakes from NZ Post in 2016.

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21 Comments

by The_4th_estate | 8th Nov 19, 2:47pm 1573177659

Interesting choice...can't say I rate highly the selection of yet another white male to the position...can you guys not say diversity out there in Board of Directorland?
Nevertheless there is much to be done...KB has plenty of lost ground to catch up on after 'not in my eyes a Sir' John Key kneecapped Kiwibank in the prime of its expansion. His shortsighted thinking is haunting the country every day...the Waikato Expressway is currently MELTING and Crumbling in spring weather only a few years into its lifespan....more of Keys cheap and shortsighted thinking right there...the waste...and people complain about beneficiaries being a waste....

by ngakonui gold | 8th Nov 19, 3:58pm 1573181928

Not only applies to the Waikato Expressway but also many new roads around the The Base at Te Rapa.
IMO more of a construction fault than a political decision causing it.

by The_4th_estate | 8th Nov 19, 6:19pm 1573190389

no, definitely a political decision, the Nats rejigged the funding justification ratios at the behest of the Land Transport Forum who is their KEY lobby....they also managed to get the H class heavy transport high efficiency class of trucks allowed on the road which was and still is ridiculous in this Country of narrow twisty roads. Our roads aren't funded to withstand such big vehicles and off highway the damage is incredible and being funded in large by ratepayers not road user levies but thats another conversation...all the RONS have been built on the cheap and we are now paying for roads that really should never have been built especially when you look at how run down schools and hospitals are...which is infact WHY they are run down, the budgets were ransacked for roading that should never have been built.

by Nzdan | 8th Nov 19, 5:22pm 1573186944

What's with the racism dude?

by The_4th_estate | 8th Nov 19, 6:21pm 1573190511

Sorry, what was racist about anything I said? For your info I am white also, however I'm not afraid of calling for diversity..are you?

by Nzdan | 8th Nov 19, 8:54pm 1573199691

I just don't know why you'd question the dudes qualities on his age or skin colour. Or is it okay to do so if he's white? The fact that you had to back yourself up with "FYI i'm white also" proves it isn't right. Racism shouldn't be limited to certain ethnicity.

Look, just be careful because Printer8 will be on here shortly educate you on prejudices.

by The_4th_estate | 9th Nov 19, 7:55am 1573239317

Its to do with the massive overhang of white male domination of so much of society. Look at it this way, I would suggest to you that when a white male is calling that issue out surely its fair to say that there needs to be a rebalancing in society otherwise its all driving one way and how can that be fair for the rest of our community. Be the change!

by Nzdan | 9th Nov 19, 10:14am 1573247642

Okay you lead the change, quit your job and insist it be given to somebody with dark skin. Let’s not hire on merits, let’s hire/appoint people based on skin colour.

by frazz | 10th Nov 19, 10:35am 1573335303

Skin colour? How about simply #$% women for a change?

by lastredact | 9th Nov 19, 12:37pm 1573256246

What kneecapped Kiwibank was poor internal leadership (who have all gone) and embarking on a core banking replacement that was a disaster due to poor planning.....and picking SAP Banking Services as the choice of system.

by Wrong John | 8th Nov 19, 3:32pm 1573180354

Male, stale & pale or white, bright & right?

by The_4th_estate | 8th Nov 19, 6:22pm 1573190554

elaborate?

by Squishy | 8th Nov 19, 4:04pm 1573182267

They got their CEO via ASB so I imagine the Cuckoo is just repopulating the nest.

by SmoKey | 9th Nov 19, 10:07am 1573247278

If they can duplicate the technology of ASB that would be a plus for the bank and customers.

by Squishy | 9th Nov 19, 2:54pm 1573264464

Most business strategy books would tell us that small companies don’t usually beat large companies in established industries by out-spending them. ASB likely have a far larger IT budget and can afford to take more chances with their IT offering. That doesn’t exclude the possibility of small banks differentiating themselves by introducing new products or services. In fact to seek to emulate larger banks would forfeit this possibility.

by Firstclass | 8th Nov 19, 4:17pm 1573183071

I welcome the change and will keep an open mind, he is a very experienced person.
Let us hope that Kiwibank will implement proper two factor authentication (2FA) for their Internet Banking service. As of today, there is no RSA token, no OTP, just a weak optional questionnaire and given the focus on cybersecurity that is not good.

by The_4th_estate | 8th Nov 19, 6:25pm 1573190712

they already do, it was upgraded some time back. The key is to stop giving your passwords to those friendly callers from Mumbai...

by Firstclass | 8th Nov 19, 8:44pm 1573199054

Unfortunately they do not have two factor authentication.
I called them and asked, sorry we do not have 2FA implemented yet was the answer.
You are likely referring to the trivial answer a simple question, or we send you a code to your mobile device..none of these are proper 2FA.
You can walk into a number of banks in NZ and ask for an RSA token and they give you one, same in South Korea and many other places in the world.
The Mumbai caller can not do anything if you hold an RSA token or a similar 2FA device.
I like a NZ owned bank as much as the next kiwi but they really need to improve in the IT Security area.

by lastlegs | 8th Nov 19, 4:36pm 1573184214

he doesnt look like undercover boss material but would be nice if he tried queuing up at one of his branches or even read the customer reviews out there.they need to get stand alone branches with offices,not share a counter with the post office.

by The_4th_estate | 8th Nov 19, 6:26pm 1573190786

The stand alone branches are around, I have used several of them and they are brilliant, no pushy insurance pitches like my days banking with Westpac...

by Mannering | 10th Nov 19, 12:10pm 1573341051

I closed my ANZ accounts because they got hacked 5 times and I got really tired of the inconvenience of having credit cards being reissued along with the general feeling of insecurity. I have found Kiwi Bank's transaction speeds much better and have had no problems except for the incredible slowness of service at the counter because of most branches dual functions. More dedicated branches and expansion of services offered should go towards eliminating excuses for dealing with the Aussies.

Re the complaints about appointing the Male, Pale and Stale to any job in NZ these days, if that ain't bigoted racist I don't know what is. But then, I when I asked the Equal Rights Commission what was wrong with selling T shirts with the slogan "It's OK to be White", substituting in dictionary definitions of OK as being "acceptable", I was told in return that "most NZers feel that statement to be offensive". I wonder how they surveyed the feelings of NZers on such feelings. Instead of White, Right and Bright, maybe we should have Anika Moa in the position as she is thrice blessed.