Key facts
- Westpac director Peter Nash has resigned from the board.
- Nash's resignation is linked to his past association with auditor KPMG.
- KPMG is currently under investigation for alleged misconduct.
- Nash previously held senior leadership positions at KPMG Australia.
- Nash acknowledged the potential for perceived bias due to his relationships.
Westpac announced on Wednesday that non-executive director Peter Nash would step down from its board, citing his relationship with auditor KPMG. The decision comes amid scrutiny of KPMG due to whistleblower allegations that the firm shared confidential company information with potential clients to secure auditing contracts.
Nash, who served as a senior partner and national chairman at KPMG Australia until 2017, joined the Westpac board in 2018. Westpac Chairman Steven Gregg stated that Nash's retirement was decided to limit any ongoing distraction for the company, given the recent attention on his former roles and relationships at KPMG.
Nash's departure follows a period of investor concern. Although re-elected to the Westpac board in December, approximately 40% of investors voted against him, partly due to his prior service as an ASX director during a time of significant upheaval for the stock exchange. Local media reported that Nash attended pitch meetings in 2023 involving auditing firms vying for Westpac's contract, a role Westpac subsequently awarded to KPMG, switching from PwC.
Martin Sheppard, who recently resigned as KPMG chairman, testified to a parliamentary hearing in mid-June that Nash had stayed at his home during the pitching process, as they are long-standing friends. Gregg emphasized that Westpac's audit tender process was robust and that Nash had declared his past connections with KPMG, not participating in the selection committee. However, Nash acknowledged the perception of bias that his relationships might create.