Senior Man Spurns Cba For Boutique Banker

The Age

Tuesday September 30, 2008

Eric Johnston

ONE of Commonwealth Bank's most senior executives has resigned, which has thrown a cloud over the bank's succession planning and may lead to a reshuffling of management ranks.

Stuart Grimshaw, who heads Commonwealth's premium business services unit, will leave the bank later this year to head boutique funds manager Caledonia Investments.

The departure marks an unusual move for the top banking executive, who remained in the field eventually to take charge from CBA chief executive Ralph Norris.

A person close to Mr Grimshaw said the executive had been looking for a new opportunity and was keen to have greater involvement in the booming funds industry.

CBA's premium business unit, which includes institutional and business lending, currency trading and the bank's online broking arm, CommSec, employs more than 5000 and last year generated earnings of

$1.48 billion, slightly up on 2006-07. It made market share gains in most of its key business lines.

Caledonia has about $3 billion in funds under management on behalf of institutional investors.

Mr Grimshaw was previously head of CBA's wealth management business, which included its Colonial funds arm. He will remain with CBA until the end of the year. -- ERIC JOHNSTON

© 2008 The Age

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