Home>Video>CEO of the Year Candidate Goes Beyond the Bottom Line

CEO of the Year Candidate Goes Beyond the Bottom Line

Fri, 12 Dec 2014

Westpac CEO Gail Kelly has driven more than financial results at Australia's oldest bank.

+

Video Transcript

David Ellis: Gail Kelly, CEO of Westpac Banking Corporation (WBK), has been nominated as a finalist for Morningstar's CEO of the Year award.

Gail has had a very successful, close to seven-year tenure at Westpac as CEO, starting in the depths of [the global financial crisis] in early 2008. Her track record has been very impressive. If you look at the financial metrics, Westpac has consistently generated strong return on equity. They've got world-leading cost/income ratios. So, the productivity at Westpac is very good. Westpac also benefits from the lowest loan losses of the four major banks in Australia. So, risk management is a key priority at Westpac, and Gail has driven that very successfully over the last five or six years in particular.

Looking at the financial metrics, there's a whole range that supports Gail's nomination as CEO of the Year. But more importantly--or as importantly--there is a range of nonfinancial metrics [on which] Westpac shines, and Gail has been a major driver of those over her nearly six to seven years as CEO.

Westpac currently has the highest customer-satisfaction rating of the four major banks in Australia. Gail has proactively driven the need to have as many female senior executives appointed as possible.

Westpac is recognized as one of the most sustainable banks or corporations in the world. So, along with the hard financial metrics, which are very impressive and demonstrate her clear leadership capabilities particularly of allocating capital with very strong return on equity, we feel that Gail has consistently demonstrated a broad range of characteristics that really do ensure that she deserves the award of CEO of the Year.

  1. Related Videos
  2. Related Articles
  1. In the Fast Lane for CEO of the Year

    During Gregory Henslee's tenure as CEO , O'Reilly Automotive has tripled its sales and quintupled its earnings per share.

  2. Gilead's Shot in the Arm

    Morningstar CEO of the Year finalist John Martin's smart capital-allocation decisions have helped drive a 100-fold increase in this biopharmaceutical's stock since he took over in 1996.

  3. Three Frontrunners for CEO of the Year 2012

    CEOs from three moat-worthy firms are in the running for this year's award.

  4. A Wholesale Win for CEO of the Year

    In a sector where manager skill is critical, Costco CEO Jim Sinegal has added tremendous value for his employees, customers, and shareholders.

  5. What to Watch as PIMCO's El-Erian Steps Down

    Morningstar's Eric Jacobson discusses what should be on PIMCO investors' radars in the wake of news that Mohamed El-Erian is resigning as CEO and co-CIO.

  6. Our Nominees for CEO of the Year

    These three exemplary managers have widened their firms' economic moats and created real value for shareholders over the years.

  7. Berkshire After Buffett: Who Will Be the Next CEO ?

    Berkshire will be 'just fine' with either of the top candidates as long as they stick to Buffett's approach to capital allocation and decentralization, says Morningstar's Gregg Warren.

  8. Buffett's Succession Plan Should Have Little Downside

    Although the public is still uncertain who will succeed the Oracle, the split-up of the chairman, CEO , and investment roles likely won't alter Berkshire's overall strategy.

©2017 Morningstar Advisor. All right reserved.