ASX Announcement - Chairman Outlines Board Renewal Program - 6 April 2004

The Chairman of National Australia Bank, Mr Graham Kraehe, today set out further details of the process for Board renewal and confirmed the Board's commitment to drive a major culture change within the organisation in conjunction with the new CEO, John Stewart.

"The National is committed to a continuing process of Board renewal on an orderly basis. The search for two new directors with banking experience has been accelerated and we now have identified candidates from Australia and the UK.  If Ms Walter leaves the board it is intended another director with the appropriate skills would be appointed. These new appointments will be announced over the next few months. Additionally, another director will retire next year."

"The three most recent appointments to the Board were made after searches to find people with specific skills, to complement existing Board skills: Brian Clark with international experience in IT and consumer marketing; Peter Duncan with international financial management experience; and John Thorn with international auditing experience at a senior level."

"Following the new Board appointments, the National will have a Board with average years of service far lower than that of any of the major Australian banks.  At that point half of the Board will have less than 3 years experience with the National."

 "The National is a large and complex organisation which is undergoing substantial change.  Since the announcement of the foreign currency options trading losses in January 2004, the then CEO and a number of other senior executives have departed.  John Stewart and his management team are implementing their change program and continuing to focus on improving financial performance and maximising shareholder returns."

"All directors accept a share of accountability for past mistakes.  However, any further changes to the Board at this time will be de-stabilising and against the interests of shareholders. We need a cohesive and effective board with the requisite experience and corporate memory to support the new management team and in the rebuilding of National's reputation."

"It would be my intention, subject to shareholder endorsement, to remain Chairman until the National's strategy formulation, operational improvement and Board reconstruction is done.  I would expect that this could be achieved over the next few years when I would then hand over the chairmanship in an orderly fashion.  This I believe would provide the stability required for the new management team to implement plans which will add to shareholder value."

For further information:

Brandon Phillips
Group Manager
Group Corporate Relations 
03 8641 3857 work
0419 369 058 mobile