Mr Graham Kraehe Appointed the National's Chairman Following the Resignation of Mr Charles Allen - 16 February 2004

The National has announced the appointment of Mr Graham Kraehe as Chairman following the resignation of Mr Charles Allen.

Mr Allen said: "The new CEO of the Bank, John Stewart, is firmly in place. It is now an appropriate time for me to step down as a Director of the National Australia Bank Limited and as Chairman of the Board.  I believe that this action is in the best interests of the Bank and its shareholders."

Mr Kraehe said: "I respect Charles Allen's decision to step aside at this time. The National is a first-rate financial institution with strong performance and growth prospects. In the immediate term my focus will be on dealing with the foreign currency options matter in an open and transparent way, accelerating further renewal of the Board, and creating a more open and transparent culture."

Mr Kraehe said that he is looking forward to working with the new CEO.  "Mr Stewart is a respected international banker and builder of a highly successful businesses.  His leadership skills have already focused management's attention on providing the highest standard of customer service, on the further integration of banking and wealth management and on the development of the UK business."

The Chief Executive of the National, Mr John Stewart, said: "I look forward to working with Graham Kraehe and the other members of the Board to rebuild confidence in the National."

Mr Kraehe has extensive business experience.  Over a thirty year period, he was the CEO of four companies in the wine, automotive and diversified industrial sectors.  This background provides Mr Kraehe with in depth experience into a number of industries to which the National provides financial services.  

Since retiring from chief executive responsibilities, Mr Kraehe has been a non-executive director of Brambles, News Corporation and founding Chairman of BlueScope Steel (formerly BHP Steel), which has given him further exposure to international business and best practice governance trends in Australia, the United Kingdom and the United States.
 
Biographical information on Mr Kraehe

Mr Kraehe, 61, graduated from the University of Adelaide in 1962 with an Economics Degree.  He started his managerial career in the automotive industry with Chrysler and then managed three turnarounds in the wine and automotive components industry.

In 1985 he joined Repco as Director of its Brake & Clutch Division.  When the division was purchased by BBA Plc in 1986, he was invited to stay on as Managing Director and listed Pacifica BBA in 1989.  Under Mr Kraehe's leadership, the diversified manufacturing company, Pacifica BBA Limited (now Pacifica) became a successful public company with significant manufacturing operations in Australia and Asia, and a large export program.

Mr Kraehe joined Southcorp Holdings Limited as Managing Director & Chief Executive Officer in December 1994.  Under Mr Kraehe's leadership, Southcorp developed as a diversified company serving global markets and generated a significant proportion of its revenue outside of its Australian home market.  During his time as CEO, the Southcorp share price, market capitalisation and profit all more than doubled.  

Since retiring as chief executive at the end of his term in February 2001, Mr Kraehe's experience as a non-executive director of Brambles, News Corporation and founding Chairman of BlueScope Steel (formerly BHP Steel), has given him further exposure to international business and best practice governance trends in Australia, the United Kingdom and the United States.

The most relevant experience to today's announcement is Mr Kraehe's experience as Chairman of BlueScope.  At Blue Scope,  Mr Kraehe has

• put together a high quality board, with complementary skills, of world class.  The National's Board will be equally well regarded when the renewal is completed;
• focused on world best practice corporate governance standards.  This was recognised last year by an ASX award;
• had a strong shareholder value focus. Total Shareholder Returns ranked among Australia's best in the past 12 months.  

Mr Kraehe is a former director of the Business Council of Australia, and a former member of the Australia Day Council and the Victorian Government's innovation Advisory Council.  He is also a former National President of the MTIA  (now AIG).  Mr Kraehe was awarded the Order of Australia in 2003 for his services to business.

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Brandon Phillips
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