Fix-it deadline for new NAB boss

NATIONAL Australia Bank has given new chief executive John Stewart an initial three years in the job and a package worth up to £2.65m a year if he can revive the embattled bank's fortunes.

NAB, Australia's largest bank and the owner of the the Clydesdale, Yorkshire, National Irish and Northern banks, said Stewart's contract would run until February 2007 with the option of annual renewal after that.

Scotsman Stewart, who was parachuted in last February after former head Frank Cicutto left over a foreign exchange trading scandal, will be paid A$2.23m (£870,000) a year plus share incentives.

There are further long-term rewards worth $2.7m a year if he can achieve a turnaround.

Stewart ran the bank's European operations before moving to Sydney. He joined NAB from Barclays.

NAB chairman Graham Kraehe said he was delighted with Stewart's performance so far.

'John is providing strong leadership to the National and I am confident he will rebuild pride among employees and restore the reputation of the National,' he said.

Stewart has said the whole culture of the bank needs changing.