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St George chief resigns

St George merger sealed - now for the cost-cutting
AdvertisementNovember 17, 2008 - 1:29PM

St George Bank chief executive Paul Fegan has resigned, after the bank's merger with Westpac was approved by shareholders last week.

Mr Fegan, who was expected to resign, will leave with a termination payout of about $2 million.

He will also receive payment for any amounts in respect of accrued salary, leave and other entitlements.

"Given that St George shareholders have overwhelmingly endorsed the merger, it's now appropriate to make my decision about the future,'' Mr Fegan said on Monday in a statement.

"I am very proud that I leave the bank in a very good position, particularly given the challenges the sector has faced around the world.''

St George's merger with Westpac on Monday also got the green light from the Federal Court.

Trading in St George shares on the Australian Securities Exchange will be suspended from the close of trading today.

Mr Fegan had been chief executive since February this year, after former boss Gail Kelly left to become head of Westpac.

He had joined St George in 2002.

Mrs Kelly wished Mr Fegan well.

"I would particularly like to thank him for his strong leadership of St.George over this challenging 2008 year and for his assistance in ensuring the merger gets off to a good start,'' she said.

"I wish Paul and his family every success for the future.''

AAP