Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
Please join this website to participate in discussions. Also join our email list at http://eepurl.com/cWsgfb
Image

CEO terminated effective today!

A weekly round up of the issues and progress
slaa4044
Posts: 36
Joined: Thu Mar 30, 2017 7:33 pm

Re: CEO terminated effective today!

Post by slaa4044 » Sat Jun 24, 2017 11:04 am

deaneus wrote:
Sat Jun 24, 2017 10:47 am
https://www.cpaaustralia.com.au/media/b ... nouncement

If "the board will be replenished... with a minimum of 8 new directors", who else is leaving? Do we have the room for more directors? And what will these new directors be paid?
There are directors who have exceeded the time limits under the Constitution ... so, if I have my facts right ... 5 'real' directors at the moment, less Petty = 4. If the Board needs 12 directors (and I really do not know why)... then we need 8 new ones ...

User avatar
nakedadmin
Site Admin
Posts: 583
Joined: Thu Mar 23, 2017 4:38 pm
Location: Iceland

Re: CEO terminated effective today!

Post by nakedadmin » Sat Jun 24, 2017 11:12 am

Did they even get 8 applications. I mean what self respecting person would agree to join this lot back in March. Also they have gag orders on Directors so your locked in to joint and several liability and cannot speak out about it. Not to mention CEO has right to attend board meetings, they must be pleasant affairs.
The Naked Webmaster

CG9999
Posts: 25
Joined: Thu Mar 30, 2017 3:37 pm

Re: CEO terminated effective today!

Post by CG9999 » Sat Jun 24, 2017 11:57 am

Interesting, if it cost $4.9M to get rid of MA, what will it cost to unwind the CPA Advice debacle?

Time4Change
Posts: 104
Joined: Mon Jun 05, 2017 2:20 pm

Re: CEO terminated effective today!

Post by Time4Change » Sat Jun 24, 2017 1:06 pm

Who really want the current board to have a say in the new 8 directors that they say will come on-boards. I don't. An interim board appointed on members vote is a must now to carry a full in-depth investigation of nearly everything - member register, governance, member growth, IT infrastructure, PDL agreement, Sponsorship, strategic plan under current board, promoting of Alex and the Naked CEO, who got paid, how much, where is the money, what are we still liable to pay, constitution, remuneration of directors, and executives, the auditors that approved and sign the set of financial statements especially CPA Advice one, was it a going concern business, CPA Advice etc..

Remember after the investigation we can claim damages and compensation, though remember it will look very ugly as it will dragged CPA brand down. Alex and the current won't got down without a fight.

Steve Hamilton
Posts: 30
Joined: Mon Jun 19, 2017 11:49 am

Re: CEO terminated effective today!

Post by Steve Hamilton » Sat Jun 24, 2017 1:08 pm

I suspect the Victorian revelations about the non renewal of the limited liability scheme was what caused the termination of Mr Malley. All the talk about the problem being fixed before the October deadline was proven to be "incorrect". Mr Malley in my opinion was probably spinning a line to the board that everything would be okay and as it clearly isn't the board finally started doing their job.

I think the payout to him is excessive, but at least he's gone now. Given the $60 million spent on advertising "The Brand" or is that "The Malley Brand" a sever cut back on billboards, paid TV spots and assorted social media dribble of the Naked CEO will cover the cost of the payout. It will probably be recouped in a couple of weeks......

Many thanks to Brett and his helpers for getting us to this point. Without someone being prepared to invest the time and effort nothing would have changed.

Now the rest of the board needs to stand down, also do we need to pay for the external review? The main problem is now gone.

theands
Posts: 5
Joined: Mon Jun 19, 2017 3:17 pm

Re: CEO terminated effective today!

Post by theands » Sat Jun 24, 2017 1:36 pm

Geez 4.9 mil is a hit. What are the CPA finances looking like ? are we going into administration soon ?

Time4Change
Posts: 104
Joined: Mon Jun 05, 2017 2:20 pm

Re: CEO terminated effective today!

Post by Time4Change » Sat Jun 24, 2017 1:45 pm

Steve the main problem is far from gone. The board also think if we sacked Alex, many will be happy and just get on with life. Unless money grows on tree, accountability, integrity and investigation is a must now, more than before. The public is more involved than before and many politicians and high rank people will comment about the payout. This will be a case study of governance failure, failure of directors duty and responsibility.

We need a full investigation irrespective of how much it cost, if the board approved $5m payout to Alex, let used the surplus to investigate everything and bring them to accountability. The constitution HAS to be changed. The BOARD has to be more open to us members. We members have to be ACTIVe members and have a say and a voice. All directors and executives remuneration have to be cut down, they are paid to much for a not for profit association. The game just started, we won round one. Buckle your seat belt, we are a long way to go.

Keep spreading the following with members in your network
Steve Hamilton wrote:
Sat Jun 24, 2017 1:08 pm
I suspect the Victorian revelations about the non renewal of the limited liability scheme was what caused the termination of Mr Malley. All the talk about the problem being fixed before the October deadline was proven to be "incorrect". Mr Malley in my opinion was probably spinning a line to the board that everything would be okay and as it clearly isn't the board finally started doing their job.

I think the payout to him is excessive, but at least he's gone now. Given the $60 million spent on advertising "The Brand" or is that "The Malley Brand" a sever cut back on billboards, paid TV spots and assorted social media dribble of the Naked CEO will cover the cost of the payout. It will probably be recouped in a couple of weeks......

Many thanks to Brett and his helpers for getting us to this point. Without someone being prepared to invest the time and effort nothing would have changed.

Now the rest of the board needs to stand down, also do we need to pay for the external review? The main problem is now gone.
Last edited by Time4Change on Sat Jun 24, 2017 3:46 pm, edited 1 time in total.

CPAwhatever
Posts: 25
Joined: Fri Jun 16, 2017 2:43 pm

Re: CEO terminated effective today!

Post by CPAwhatever » Sat Jun 24, 2017 2:09 pm

I just read these news. Such a win, I am feeling there is hope for this organisation after all!
Stevenson done an awesome job. Thanks to all the people who dedicated their time, effort and brain power to get us to this point. Thank you!

I do hope that there will be a governance change. Why cant they implement online voting for renumerating and other items like all the listed companies do?

chuck_meister
Posts: 92
Joined: Fri Mar 31, 2017 8:58 am

Re: CEO terminated effective today!

Post by chuck_meister » Sat Jun 24, 2017 4:00 pm

Anger, frustration and complete disbelief. There must be a way to stop this or claw it back. We urgently need court intervention under s 232/233 of the corporations act. This is so blatently "contrary to the members interests as a whole" .

FCA
Posts: 14
Joined: Wed May 03, 2017 2:27 pm

Re: CEO terminated effective today!

Post by FCA » Sat Jun 24, 2017 4:22 pm

We (the collective) have paid for Malley to be a multi multimillionaire - all for running a non for profit organisation. Unbelievable.

passedfc
Posts: 113
Joined: Mon May 29, 2017 3:14 pm

Re: CEO terminated effective today!

Post by passedfc » Sat Jun 24, 2017 5:20 pm

Mallee is just the beginning . The termination payments obscene... and not sure what can be done about that.
governance issues here are massive and the CPA have created the case of the worst kind.
BUT... there is the will and the people to clean this up and get the organisation back on track.
The rest of the board and the New CEO along with the COO need to go as well. How this is achieved is yet to be seen so we need to continue with the legal advice to ensure things don't just drift away.
Many good people here with much to offer so full support to Brett and team to guide next steps.

Dave
Posts: 26
Joined: Wed Jun 21, 2017 1:33 pm

Re: CEO terminated effective today!

Post by Dave » Sat Jun 24, 2017 6:27 pm

Hi All,

Agree with the comments made by members.

The payout is excessive. How did they do it with the nomination and rem council unable to sit due to there no longer being independent directos?

$4.9 million is nearly 4 years base of $ 1.3 million.

Given his service of 8 years, understand that there will be some annual and long service leave. But this is unlikely to be more than 6 months.

In the ASX environment (ASX Governance Code which CPA is part of) a payment of more than 1 years pay would have required shareholders approval (in this case members).

We need to hold the Board accountable and they may be personally liable for the $ 4.9 million payment.

According to the Board last friday he was doing a great job and a week later he is sacked. How do they explain their accountability?

Seems like AM held them to ransom, destroyed the CPA brand and then got a golden parachute for the disaster he created.

I am a FCPA and a member of CPA for over 25 years.

Over the last 15 years, CPA has lost its way and has no focus on members. only lip service. They are very good at handballing issues when you call them and don't resolve issues. It was a very different organisation prior to that.

There was an AFR article in respect of Victorian public practice member and the response he was getting in respect of the expiry of the limited liability scheme. What a disgrace telling the member that it is a small issue and to keep using his stationary even when it is not valid.

Agree that the remaining Board and the whole executive must go and we need to install an executive group who cares about the members.

I saw a spokesperson who was trying to downplay the impact of the loss of the schemes. Obviously not an accountant !!!

We need to get rid of all these academics and marketing people from our professional body.

We need to have an EGM to have a complete clean out.

I suspect that there is a stink in respect of the proper FCPA/CPA number which is likely to be well under 100,000.

This would not support the $60 million per year we have been spending trying to get full members. CPA has been recruiting students and has had no focus in converting them to full CPAs. Even the program is outsourced to Pearson to administer with no control from members. in effect it has become like a RTO.

So we may only need about 5,000 members to have an EGM.

Well done to Brett and the team.

Keep going, it is not over.

We need to get control of our professional body back.

I will also be contributing to the fighting fund.

All the best to all involved.

There are still people with integrity in our profession !!!!

Dave
Posts: 26
Joined: Wed Jun 21, 2017 1:33 pm

Re: CEO terminated effective today!

Post by Dave » Sat Jun 24, 2017 6:28 pm

Hi All,

Agree with the comments made by members.

The payout is excessive. How did they do it with the nomination and rem council unable to sit due to there no longer being independent directos?

$4.9 million is nearly 4 years base of $ 1.3 million.

Given his service of 8 years, understand that there will be some annual and long service leave. But this is unlikely to be more than 6 months.

In the ASX environment (ASX Governance Code which CPA is part of) a payment of more than 1 years pay would have required shareholders approval (in this case members).

We need to hold the Board accountable and they may be personally liable for the $ 4.9 million payment.

According to the Board last friday he was doing a great job and a week later he is sacked. How do they explain their accountability?

Seems like AM held them to ransom, destroyed the CPA brand and then got a golden parachute for the disaster he created.

I am a FCPA and a member of CPA for over 25 years.

Over the last 15 years, CPA has lost its way and has no focus on members. only lip service. They are very good at handballing issues when you call them and don't resolve issues. It was a very different organisation prior to that.

There was an AFR article in respect of Victorian public practice member and the response he was getting in respect of the expiry of the limited liability scheme. What a disgrace telling the member that it is a small issue and to keep using his stationary even when it is not valid.

Agree that the remaining Board and the whole executive must go and we need to install an executive group who cares about the members.

I saw a spokesperson who was trying to downplay the impact of the loss of the schemes. Obviously not an accountant !!!

We need to get rid of all these academics and marketing people from our professional body.

We need to have an EGM to have a complete clean out.

I suspect that there is a stink in respect of the proper FCPA/CPA number which is likely to be well under 100,000.

This would not support the $60 million per year we have been spending trying to get full members. CPA has been recruiting students and has had no focus in converting them to full CPAs. Even the program is outsourced to Pearson to administer with no control from members. in effect it has become like a RTO.

So we may only need about 5,000 members to have an EGM.

Well done to Brett and the team.

Keep going, it is not over.

We need to get control of our professional body back.

I will also be contributing to the fighting fund.

All the best to all involved.

There are still people with integrity in our profession !!!!
Last edited by Dave on Sun Jun 25, 2017 3:52 pm, edited 1 time in total.

fidgetspinner
Posts: 24
Joined: Wed Jun 21, 2017 3:02 pm

Re: CEO terminated effective today!

Post by fidgetspinner » Sat Jun 24, 2017 6:32 pm

No doubt his contract had CPAA stitched up legally. He will need to save his pennies (millions). He’s got to be unemployable now.

User avatar
nakedadmin
Site Admin
Posts: 583
Joined: Thu Mar 23, 2017 4:38 pm
Location: Iceland

Re: CEO terminated effective today!

Post by nakedadmin » Sat Jun 24, 2017 6:33 pm

chuck_meister wrote:
Sat Jun 24, 2017 4:00 pm
Anger, frustration and complete disbelief. There must be a way to stop this or claw it back. We urgently need court intervention under s 232/233 of the corporations act. This is so blatently "contrary to the members interests as a whole" .
Yeah
The Naked Webmaster

Charlie
Posts: 1
Joined: Sat Jun 24, 2017 8:02 pm

Re: CEO terminated effective today!

Post by Charlie » Sat Jun 24, 2017 8:59 pm

Not surprised at Malley's sudden termination. The Board is in troubled waters and removing Malley was a step in the right direction. The termination pay received by Malley was too excessive for a members organisation. It is time to have a fresh start. This forum is good starting point...

Heisenberg
Posts: 84
Joined: Thu May 04, 2017 5:19 pm

Re: CEO terminated effective today!

Post by Heisenberg » Sat Jun 24, 2017 9:17 pm

fidgetspinner wrote:
Sat Jun 24, 2017 6:32 pm
No doubt his contract had CPAA stitched up legally. He will need to save his pennies (millions). He’s got to be unemployable now.
He probably will have trouble finding something that he wants.

But he doesn't need to work - he's earned many millions of OUR money.

Dave
Posts: 26
Joined: Wed Jun 21, 2017 1:33 pm

Re: CEO terminated effective today!

Post by Dave » Sat Jun 24, 2017 10:23 pm

Hope there is someway to stop this payment or hold the Board accountable for the payment.

$4.9 million is nearly 4 years of the 1.3 million base pay.

As per the analysis done by Chris while back even the base is over two times the ACCA CEO's pay and she has achieved member growth.

Nelson
Posts: 3
Joined: Sat Jun 17, 2017 7:36 pm

Re: CEO terminated effective today!

Post by Nelson » Sat Jun 24, 2017 10:55 pm

There is no guarantee that Malley's contract supports this level of payment. We need the Board to provide details of the arrangements, where the CEO is terminated or resigns. With this information we will yet see another chapter of the unprofessional relations between the Board and AM

Karena
Posts: 8
Joined: Sat Jun 24, 2017 10:28 pm

Re: CEO terminated effective today!

Post by Karena » Sat Jun 24, 2017 11:20 pm

We should send the whole Board to sit for Ethics and Governance exam, I bet none of them will pass!

I am recently qualified and received a completely blank agenda as a congratulations gift, come on CPA, I thought we are in the digital age, I would like to know who authorised this? Are the printing and shipping cost part of the marketing budget?! And why are we still receiving the monthly magazine in prints? Is it also part of the CPA innovative strategy?

I would also like to know if CPA will continue to sponsor Australian Open tennis and the National Basketball League? What are the KPI and ROI measures for these sponsorship?

Post Reply