'It's the best time': Westpac CEO Gail Kelly on walking away from $13 million a year job

Westpac chief executive Gail Kelly has spoken about why she is walking away from her $13 million-a-year position after seven years at the helm.

Ms Kelly will step down as the bank's CEO in February 2015, to be replaced by Brian Hartzer, the chief executive of Westpac's Australian Financial Services division.

Her retirement comes a year after she became the highest-paid retail bank CEO in Australia, with a salary of $12.8 million.

Speaking at a press conference today, Ms Kelly said after seven years at the head of Westpack and a previous six in charge of St George, she felt it was time to move on.

"The best time to retire is when the bank is in good shape," she said.

She said the strong forward momentum and succession planning in place at Westpac also made her choice easier.

"I love this bank. I love its people. I absolutely love its customers and its deep connection to the community," she said.

Ms Kelly said her seven years at the bank were "transformative" for the institution, encompassing the Global Financial Crisis and the merger with St Geore.

She said the merger was a personal highlight of her tenure.

Chairman Lindsay Maxsted said Ms Kelly was leaving the bank in good shape.

At the same press conference Mr Maxstead said he had "thoroughly enjoyed" working with Ms Kelly, and both endorsed her replacement Mr Hartzer.

The numbers back up Mr Maxsted's endorsement of Ms Kelly's leadership.

She took over in 2008, when shares were trading at $28.06, Fairfax News has reported.

Yesterday, they were at $33.33 - an increase of nearly 20 per cent.