The National Australia Bank Ltd (ASX: NAB) share price has been a solid performer on Thursday.
In early afternoon trade the banking giant's shares are up 1% to $25.70, making it the best performing big four bank.
Why is the NAB share price on the rise today?
The market has responded positively to news that the bank has chosen its replacement for retiring chairman Ken Henry AC.
According to the release, current director and interim group chief executive officer, Philip Chronican, has been selected as the next chairman of NAB.
Mr Chronican's appointment was unanimously supported by the bank's directors at a board meeting in Melbourne. He will commence in the role later this year.
NAB director David Armstrong believes Mr Chronican's experience and knowledge of the challenges and opportunities facing the bank have made him an ideal and obvious candidate.
Mr Armstrong said: "Phil has been an outstanding Director for NAB and has a deep, extensive background in Australian financial services. Phil told the Board that he did not intend to be considered as a candidate for the CEO role, enabling us to move quickly to appoint him as Chairman."
He added: "We considered a range of internal and external candidates and Phil was simply the most outstanding candidate. This will provide certainty to the market and our shareholders and will simplify the search and recruitment process for a new CEO."
Mr Chronican certainly sounds up for the challenge.
He said: "Much needs to change in a meaningful way at our bank. We have unfortunately been found wanting in too many areas when it comes to our customers, and I am determined to ensure that change happens to ensure we meet and exceed their expectations."
What now?
I thought this was a positive appointment and can't say I'm surprised with its share price rise today.
Despite this gain and its strong run over the last 10 weeks, I still see a lot of value in NAB's shares and believe they would be a good investment option. I would choose NAB ahead of Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) at this point.
