The elevation of Wikramanayake, who has worked at Macquarie since 1987 and ran its US$369 billion (A$495 billion) asset management arm for more than a decade, marks a new phase for a company known for its record of beating profit expectations.
Her predecessors, Allan Moss, followed by Nicholas Moore, each led Australia’s biggest investment bank for at least a decade.
“It’s always a challenging decision but after 10 years it felt like the time is right,” Moore said on an analyst call before the bank’s annual meeting, referring to his stepping down.
“With Shemara, we have a really outstanding successor.”
Macquarie shares were down 4% on Thursday after the bank coupled its announcement of a CEO change with a forecast of flat profit growth in 2019.
The shares have surged 134% over the 10 years under Moore’s leadership as the bank almost continually grew profits and beat forecasts. Wikramanayake’s unit delivers about a third of its profit, according to Macquarie.
Wikramanayake was the bank’s second-highest paid person in the 2018 financial year, according to its annual report, earning a total US$12.3 million (A$16.7 million), less only than Moore who took home US$14 million (A$18.9 million). Another star employee of the so-called “millionaires’ factory”, debt banker Ben Brazil, got US$11.1 million (A$15 million).
“She is an impressive individual, very deeply involved in the Macquarie culture and its risk management structure,” said Morningstar banking analyst David Ellis.
“The focus on global infrastructure, the focus on energy, particularly renewables, the interconnection between the five business units, is unique. I’m sure Shemara will treasure that and improve on that.”
Fairfax Media reported last year that the 56-year-old had never sold a Macquarie share in 30 years.
Wikramanayake takes the role at the start of what is expected to be a tough phase for financial services companies in Australia. The sector is facing the country’s most powerful type of public inquiry, a Royal Commission, and economists are waiting for the central bank to raise interest rates from record low levels, putting downward pressure on dealmaking.
“It is a different world where it won’t be so easy,” said Steve Miller, an adviser at Grant Samuel Funds Management.
“Achieving superior returns will be more challenging now.”