Westpac CFO steps into CEO role following shakeup

Westpac CFO Peter King, set to retire in 2020 after 15 years with the bank, will instead step into the acting CEO role following a shakeup at the organisation.

The resignation of Brian Hartzer comes after the disclosure of 23 million breaches of code related to money laundering.

Westpac chair Lindsay Maxsted says the board and business are focused on fixing these issues, "and lift our standards to ensure our anti-money laundering and other financial crime prevention processes are industry leading.

"We are currently working through our response to the Statement of Claim and will shortly commence the independent review. The Board will continue to provide updates on these issues."

King says he's honoured to be appointed to this role. "I understand the responsibility of this position and the importance of Westpac both as an institution and Australia's oldest bank. I am committed to helping address the current issues and restore the reputation of the bank."

Maxsted says King is the right person for the role. "Peter has had a long and distinguished career at Westpac and has been the CFO since 2014. He is the right choice to provide stability and direction to the Bank and its people."

King will commence in the role on 2 December and will continue until a permanent CEO is appointed, with a three month handover. He will have a fixed remuneration of $2.1 million, short-term incentive of $2.1 million and a long-term incentive of $2.8 million.

Current COO, Gary Thursby, will act as CFO.