Bendigo Bank shares fall on surprise CEO exit

This regional bank's CEO is stepping down after six years in the role.

| More on:
Bank building with the word bank in gold.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are under pressure on Tuesday morning.

At the time of writing, the regional bank's shares are down 1% to $11.31.

Bendigo Bank shares fall on CEO exit

This morning, the regional bank announced that its CEO, Marnie Baker, has decided to step down from the role.

According to the release, Ms Baker intends to leave after 35 years with the company and six years as its leader at the end of next month.

The outgoing CEO leaves on good terms with the bank's board. Bendigo and Adelaide Bank's chair, Vicki Carter, "thanked Ms Baker for her decades of service and leadership of the Bank through a period of great opportunity and significant challenge, which included frequent natural disasters, COVID-19 and record low interest rates."

Carter also praised "Marnie's authentic leadership style" and "the execution of a significant and necessary transformation agenda which included the consolidation of core banking platforms, brands and divisions."

Replacement announced

Bendigo and Adelaide Bank's shares are falling today despite the bank already identifying and appointing its next CEO.

The release reveals that its current chief customer officer for consumer, Richard Fennell, will take the reins on 31 August on a $1.5 million a year contract.

Carter notes "Mr Fennell's strong focus on the customer, his achievements in digital and significant financial expertise were among the key attributes the Board prioritised in its detailed succession planning, which included a comprehensive external search."

The company's chair believes the bank is "in a position of strength and Richard is well placed to lead the next phase of [its] sustainable growth agenda."

Fennell appears confident that he is up to the job. Commenting on his appointment, he said:

Bendigo and Adelaide Bank is a unique institution that plays an important role in providing Australian banking consumers with a genuine and compelling alternative to the majors. I am grateful for the transformation work Marnie has driven to create strong foundations for the Bank and I am proud to accept the responsibility for leading Bendigo and Adelaide Bank and ensuring its future success.

I look forward to connecting with all of our people who work hard every day to deliver great outcomes for our customers as we work together to find new ways to ensure the Bank can continue to deliver on its purpose of feeding into the prosperity of our customers and the community.

Bendigo and Adelaide Bank's shares are up 30% over the past 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Resources Shares

Should I switch my ASX 200 banking stocks for ASX 200 miners before earnings season?

The ASX 200 Index is dominated by Australia's bank and materials/mining sectors, which together account for around half of the…

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Bank Shares

Here's when Westpac says the RBA will now cut interest rates

The RBA surprised everyone by keeping rates on hold last week. So, when will the next cut happen?

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Bank Shares

This is the ASX bank stock with the largest dividend yield right now

Looking to ASX bank stocks for dividend income right now?

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

ASX banking sector: Is it time to consider a regional bank?

The big 4 banks are widely considered to be overvalued.

Read more »

A person leans over to whisper a secret to a colleague during a meeting.
Bank Shares

Here are the latest growth forecasts for the CBA share price

Can the bank continue rising? Here are some expert views.

Read more »

A businessman presents a company annual report in front of a group seated at a table
Bank Shares

Earnings season predictions: Macquarie weighs in on the big 4 banks

What are the broker's predictions?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Major CBA investor reveals why he's all in

This investor described one major reason driving his investment in CBA shares.

Read more »

Young investor sits at desk looking happy after discovering Westpac's dividend reinvestment plan
Bank Shares

Invested $10,000 in Westpac shares 2 years ago? Guess how much you've already banked!

Atop their regular dividend payments, Westpac shares have enjoyed a strong two-year run.

Read more »