My letter to the Board re Malley termination

[Jeremy]

Dear all

Well done to all. Terrific replies all round!

I responded to Jim's email from Friday night....

Cheers
Jeremy
-----------------------------------------
Dear Jim

You stated:

If you wish to make comment or have any questions please contact boardofdirectors@cpaaustralia.com.au.

Don’t mind if I do…...

If this were any other organisation, it would be a joke - an April first joke. But sadly, the $4.9 million payment represents business as usual at a once prestigious organisation.

Do you have any idea how the much the organisation and its leadership is seen by many of its members? We are a sleeping giant – we will not march in the streets, we will not shout at rallies, we will not down our tools. But we will mobilise. We will organise ourselves to restore the organisation and its leadership to what the CPA used to stand for - ethics, transparency, accountability, integrity.

Regards
Jeremy

[Stomper]

I can't bring myself to write, just yet. Too filled with anger to put pen to paper.

Seriously wonder how these people can live with themselves and justify their positions.

It beggars belief......

[passedfc]

Ahh yes the anger and outrage !!
Stomper it is hard to write and remain professional given the outrage.

[CPAwhatever]

I like Jens letter, very well structure. I also love the idea of forwarding the concern to ASIC, this way there will be work done on a few fronts. Well done all.

[jendalitz]

So proud of all my fellow CPA's for making their voices heard on this issue. Sandra - your opinion piece in the AFR was fantastic and I've shared it on my social networks. To TheAllSeeingEye and The Cyclist - well done! To everyone else - a quick email to the Board will take only a few minutes and will show that you care about what's going on - the email address is boardofdirectors@cpaaustralia.com.au - it doesn't need to be as long winded as mine, just tell them you want them to go!!!!

Also, if you haven't done so, this is the SPILL MOTION I've started with three other frustrated members - jump on board and let's share the bejeebers out of this: https://www.surveymonkey.com/r/LMQZ775

Finally, to the question on board nominations, thanks for the votes of confidence. If we get the spill motions up then we're going to need an interim board that fills the turnaround needs of the organisation. Let's work out those criteria first and if there's a fit then I'll continue to be active and to help in whatever way I can.

[jendalitz]

Jeremy - sorry i left you out on my acknowledgements - great email by you too!

[Jeremy]

No worries, Jen.
I was hoping to post a Dilbert cartoon from yesteryear about our dear CEO's pay, but I don't appear to be able to post attachments. If I can be so self-indulgent for readers to look at the cartoon which I posted on my personal LinkedIn page a couple of days ago......
Cheers
Jeremy Danon

[justice4CPA]

We should also copy all of our letters and emails to AFR, ASIC and Nick Xenophon so that they know that the voice of discontent is getting louder.

[The Cyclist]

No worries, Jen.
I was hoping to post a Dilbert cartoon from yesteryear about our dear CEO's pay, but I don't appear to be able to post attachments. If I can be so self-indulgent for readers to look at the cartoon which I posted on my personal LinkedIn page a couple of days ago......
Cheers
Jeremy Danon

Jeremy here it is .

Dilbert.jpeg (125.71 KiB) Viewed 5047 times

[ziffelmac]

Here's some feedback to the Board from me.

--- letter commenced here ---
It seems that the Board wants feedback.
Ok, here I go:

If this were any other organisation, Malley's payout would be a joke. But sadly, the $4.9 million payment represents business as usual at a once prestigious organisation. Those directors who resigned instead of carrying out their duties are just as culpable as those who remain.

You're trying to tell me that Alex did a great job, but you fired him anyway? Make up your minds!

But seriously, given how quickly Brett's legal fighting fund is growing, you do not have much time left. My proposed course of action (in order) to you:

1) stop digging that hole.

2) no damned 'independent' (or any other) reviews! It is
obvious to all what change needs happening:

3) you were not authorised to give Malley a payout. Any
contract signed earlier to do so has a good chance
of being argued to be corrupt. Thus, to save yourselves
liability, do not pay Malley his 4.9.

4) Immediately draft a special resolution for members to
vote to return CPAA to direct election of Board members.

5) Schedule an EGM to vote on same.

6) forensic accountant to work where the money has all gone.

In the meantime:

7) remove all touristy and car-review-type materials
from "In the Black", and focus on the technical issues
facing accountants. Fire the editor if necessary.

8) Stop trying to sell "In the Black" to all and sundry,
and just sell it to members. Rename to "Australian CPA"
or "Australian Accountant" if necessary to flag that
this is a members' magazine and that CPAA is an
organisation for members, not for 'the business community'.
These changes to the magazine reflect the attitude
changes required for the organisation as a whole.

9) Stop expanding to Bhutan or whatever the hell else was
Alex's next exotic destination. By all means service
ex-patriate members. But we are first and foremost
and organisation for Australian accountants (both words
emphasised individually). We expanded into Asia, but
dropped the ball on liability insurance? In fact, not so
much dropped the ball, as saw it and chose to ignore it.

10) Wind down any and all advertising and marketing that
calls us a professional services organisation.
We are an accountants' organisation!!

11) Initiate legal proceedings against Malley for negligence
at the least, and fraud at the most. Pray that your are
not implicated. If you are, then be aware that you will
face the consequences, so minimise them by growing
some moral-ethical spines.

12) Resign.

Sincerely,
Robert Czernkowski FCPA

[chuck_meister]

In regards to forensic accountant. If only Ben Afleck were available.
Now that is some serious analysis!

14-the-accountant.w1200.h630.jpg (124.85 KiB) Viewed 5019 times

(Taken from the Movie "the Accountant").

[Dave]

Hi All,

Have to agree with Ziffelmac.

In the black has become a social magzine compared to the CPA magazine that was produced about 10 years ago.

The IPA magazine is much better and has relevant material including technical material.

CPA outsourcing the magazine and has completely lost its way and producing irrelevant material.

Better to not to have the magazine and reduce member subscriptions.

You wonder with all the outsourcing of the magazine, education etc. what actual work is done????

[Stomper]

You wonder with all the outsourcing of the magazine, education etc. what actual work is done????

Celebrity promotion and sporting events!!!!

[CPAwhatever]

You wonder with all the outsourcing of the magazine, education etc. what actual work is done????

Celebrity promotion and sporting events!!!!

This is so painful, because it is so true!

[jendalitz]

Robert Czernkowski you made me laugh out loud. Bhutan? Sure, why not!

[JWheldon]

It is time for President Peter Wilson, the HR and public relations expert to do the right thing and explain to the members of CPA Australia, about the Alex Malley contract and termination payment. The Presidents and board keep explaining it is complex, but too afraid to detail the problem.

Let the members see the contract of Alex Malley.

Let the members of this not for profit organisation, know why this issue is complex. This issue is clearly material, the accounting standards clearly intended for this type of issue to be disclosed to the stakeholders and yet the board for years have avoided explaining the problem or the cost.

Was this Alex Malley mess created in 2007 when he became CEO and who signed and authorised the contract????

The membership will not give up, because they demand the truth. So President Wilson and board of CPA Australia do the right thing and disclose.

http://www.afr.com/business/accounting/ ... 914-gyhxcc

Mr Malley said CPA's executive had complied with all laws and obligations and defended his $4.9 million termination payment, which the review panel had described as "well above" the standard for a CEO.

"I believe you're actually paid on performance... there was a contractual obligation," he said. "I did what I was asked to do, I did it well and I was compensated. I don't think we can have a world that apologises for being successful."

The report stated that the payout was too high: "The $4.9 million separation payment made upon the former CEO's departure was well above what would be considered standard for a CEO position."

[nakedadmin]

It is time for President Peter Wilson, the HR and public relations expert to do the right thing and explain to the members of CPA Australia, about the Alex Malley contract and termination payment. The Presidents and board keep explaining it is complex, but too afraid to detail the problem.

Yes of course it is. We've had a CEO excessively remunerated being paid out an excessive number of years and no one will even say if it was commitment under a preexisting contract or some negotiated pay out in the midst of an ASIC investigation and the IRP investigation.

How can the members move forward with a new board of Directors that continue to cover up what actually happened there.