Ms Fagg’s appointment is effective 16 December 2019, subject to regulatory approval.
Commenting on the appointment, Dr Henry said: “While I will soon be resigning from the board, on behalf of Philip Chronican (chairman-elect) and our fellow directors, we are delighted Kathryn has accepted our invitation to join the board and look forward to the diversity of thought, experience and skills she will bring.”
Ms Fagg said: “I believe a strong banking system is essential for our nation’s economic wellbeing and I look forward to bringing my knowledge and experience from multiple sectors, including banking, to address the challenges and opportunities for NAB to earn the trust and respect of its shareholders, customers, employees and the broader community.”
Ms Fagg was a board member of the RBA for over five years and was appointed an Officer of the Order of Australia in the 2019 Queen’s Birthday Honours for distinguished service to business and finance, to the central banking, logistics and manufacturing sectors and to women.
Along with other various roles, she is also chairperson of Boral Limited and a non-executive director of CSIRO. She will retire as a non-executive director of Incitec Pivot at the conclusion of their annual general meeting on 20 December.
Dr Henry stepped down from his role as chairman in February, announcing his retirement following criticism and intense scrutiny of his appearance at the banking royal commission.
Former NAB CEO Andrew Thorburn also resigned from his role in February following revelations of misconduct by NAB at the banking royal commission, with NAB director Mr Chronican appointed as interim CEO.
In March, Mr Chronican was appointed as NAB chairman after being unanimously supported by directors at a scheduled board meeting in Melbourne.
NAB recently appointed Ross McEwan as permanent CEO and group managing director. He will commence his new role on 2 December.
[Related: NAB to provide $2bn for affordable housing]
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.