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Email 18: 10th April 2017.EMAIL 18: Concerns regarding Deputy Vice-Chancellor Tyrone Carlin to Sydney University

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Brett Stevenson
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Email 18: 10th April 2017.EMAIL 18: Concerns regarding Deputy Vice-Chancellor Tyrone Carlin to Sydney University

Post by Brett Stevenson » Mon Apr 10, 2017 7:57 pm

Below is the letter I just sent to the Chancellor (Belinda Hutchinson) and Vice-Chancellor (Michael Spence) at Sydney University.

Begin forwarded message:

From: Brett Stevenson <bstevenson100@gmail.com>
Subject: Concerns regarding Deputy Vice-Chancellor Tyrone Carlin
Date: 10 April 2017 at 7:41:27 pm AEST
To: vice.chancellor@sydney.edu.au, the.cc@sydney.edu.au

Dear Vice Chancellor Spence and Chancellor Hutchinson,

I am writing in relation to the Sydney University Deputy Vice-Chancellor Tyrone Carlin.

I believe his role as President/Chairman of CPA Australia for which he is very generously remunerated and which was 'reconfigured' on the basis of requiring 3 to 4 days work per week, involves him in ethically concerning and a work demand situation which we bring needs to be brought to your attention. The ethical concern is possibly the most serious one.

Work demand concern
In relation to the work demand all I can say is that it seems impossible for any mortal person to carry such a workload without one 'losing out’.
As members of CPA Australia we are unable to ascertain what his remuneration is beyond what was established with a major governance review, and which could possibly provide some clue as to his time commitments. However the descriptions provided to us by CPA Australia would indicate it is a reasonably serious and onerous role, quite apart from his 10 days or so of board and committee meetings p.a.
Certainly the workload for previous Presidents was considerable.
This is the description provided to us the members just this month in relation to his role
The role of the President and Chairman is multifaceted. In addition to traditional governance requirements, the role includes significant international ambassadorial functions, with commitments to member engagement activity and advocating with international bodies, regulators and governments across our various geographies.
When allied with the only other detailed statement we have of the Presidents role from the governance review as per below we feel constrained to highlight our concerns.
We suggest that the President is remunerated on the same basis as currently, but that the total possible amount reflect the reality that Presidents are spending 3-4 days per week, including weekends, on CPA Australia business – not the 1 ½ - 2 days envisaged by the current formula.

Ethical concern
The refusal of the Board to fully disclose the remuneration for the Key Management Personnel (of whom 12 are directors and 3 are senior executives), while being compliant with the law in relation to a Company Limited by Guarantee (as we are), the context of a close-knit group at CPA Australia who have an inordinate amount of influence, and have done so for some time raise questions of probity, conflict of interest and fundamental ethical questions in relation to integrity.
I contend that Tyrone Carlin is part of that controlling group with whom considerable concerns are being exposed.
Beyond going into details,which you can readily obtain by looking at recent AFR articles and a website we have established - cpamembers.org - all I can do is alert you to the issues and to tread carefully.
Our profession subscribes to APES110 in relation to our ethical standards, and they are very high for a professional body.
100.1 A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest. Therefore, a Member‘s responsibility is not exclusively to satisfy the needs of an individual client or employer.
100.5 A Member shall comply with the following fundamental principles:
(a) Integrity – to be straightforward and honest in all professional and business relationships.
(b) Objectivity – to not allow bias, conflict of interest or undue influence of others to override professional or business judgments.

These are in addition to the ever-present obligations imposed on Directors from the Corporations Act, with which I am sure you are familiar.
I, and many other members believe, these above principles require closer scrutiny in relation to President Tyrone Carlins role at CPA Australia, about which we are actively pursuing action.
I believe it is important you are aware of these matters because of the senior role he has at Sydney University, and the possible impact of negative media from these matters in the future.

I have placed this email letter on our website for other members to be aware of the issues and to keep us all up to speed on these matters because the leadership of CPA Australia has dismantled many of the communication channels on our official website and threatened and intimidated members who discuss these matters.
I hardly need to add the very strange decision to move the AGM later this month to Singapore which has under 5% of the total membership of CPA Australia while Australia has over 75%.
A decision we believe is their way of avoiding these matters being raised at the AGM here in Australia.
Therein I suggest lies a major concern.

But as I have said above that is one of the areas we are pursuing action on with Tyrone Carlin given his role as President/Chairman of the board.

Yours faithfully

Brett


Brett Stevenson CPA BComm MDiv
bstevenson100@gmail.com

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Re: Email 18: 10th April 2017.EMAIL 18: Concerns regarding Deputy Vice-Chancellor Tyrone Carlin to Sydney University

Post by Brett Stevenson » Fri Apr 21, 2017 12:39 pm

Just a quick update on the letter about Tyrone Carlin to Sydney University.
I haven't received a reply yet from either the Vice Chancellor or Chancellor however another member has.
Carlin has assured them that he does not do more than 20% of his time (1 day) with CPAA work and other duties outside the university.
So, that is possibly the predictable answer they would give as what we do at CPAA is not of their concern.

However I would say when we find out what the presidents remuneration was last year that will give us a fair idea if Carlin is telling the university porkies or not.
If the President of CPAA last year was paid more than about $130,000, then we can say we are remunerating the president on more than one days work. Given that the current remuneration formula for the President is based on 60% of the Auditor-Generals salary (currently about $705,000) assuming a 3 to 4 day/week work commitment to CPA (lets say 3.5) it means that a one day commitment (as Carlin has assured the university is the case) it would mean it should be about $130,000 (705,000 *60% = 423,000/3.5 = $121,000, lets round it up to $130,000).
If we find that the President last year was paid say $300,000 then we can assume either we are overpaying (which is likely the case) and/or Carlin is perhaps not conveying to the university the true extent of the work he is required to do as President at CPA (which is likely to be the case also).
It's a tricky one eh?
I hardly think Sydney University want to become involved in CPAA affairs (quite rightly) but then again I hardly think they will want to have a stopwatch mentality checking what one of their senior executives is up to, and whether he is doing his job fully at the university.
No easy answer to that one.
But one thing we do know and will certainly not be backwards in emphasising with the general public and the CPA membership (whether Sydney University hierarchy want to listen or not is up to them) is that there are major issues at CPAA, and Carlin as president needs to address them rather than remain silent and move AGM's to Singapore (as he has done) to avoid the scrutiny.
Also some investigation into question marks over allegations that Alex Malley was 'sacked' from Macquarie University, and whether this was given due diligence and investigation at the time he was appointed President and then as CEO at CPAA soon thereafter. There are other major issues which have been exposed in the AFR, and on our website (cpamembers.org) which will require Carlin as president to address, and from where I am sitting it does not look very good.
The academic world is not that large that the connections between Petty, Malley and Carlin back there in 2006, and that have continued for them at CPAA (to their financial and reputational advantage) has not gone unnoticed, and the allegations are pretty serious.
This is not just a matter of hours worked, we are looking at significant ethical issues.
Time will tell but I suggest the Sydney University hierarchy keep their 'ear to the ground' on what is occurring at CPAA because we want these issues fully exposed and dealt with.
Carlin is the president/Chairman and we expect him to take the lead on that. To date we are not impressed with his approach, and if what has been happening in the last two months especially is any indication with the threats and intimidation from the CPAA leadership to members who raise these issues then we think this will get ugly pretty soon..

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Re: Email 18: 10th April 2017.EMAIL 18: Concerns regarding Deputy Vice-Chancellor Tyrone Carlin to Sydney University

Post by nakedadmin » Fri Apr 21, 2017 2:44 pm

In this article: http://www.afr.com/brand/rear-window/ei ... 409-gvh1wn

Tyrone is quoted as saying: "I can only say that the 2006 document doesn't refer the board's expectation of my role as president," which together with the 20% requirement, indicates that the Directors of which he is one, determined that the requirement is for less than 1 day a week.

The AFR article states:

"He said that excluding events, responsibilities for review and approval of minutes and statutory accounts, and correspondence with members, his board and board committee meetings alone take up 10 days per year, while Teachers Mutual board and committee meetings take up around 5.25 hours per month."

Does that mean he spends less than 10 days a year on CPA Australia? My feeling is that it may take a bit more commitment than that to fix some of the problems. Probably more than 1 day a week.
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Re: Email 18: 10th April 2017.EMAIL 18: Concerns regarding Deputy Vice-Chancellor Tyrone Carlin to Sydney University

Post by Brett Stevenson » Fri Apr 21, 2017 3:13 pm

This is what CPAA members have been told of the Presidents workload and remuneration.
Does this tally with Tyrone Carlins assessment to his Sydney University bosses? Mmmm.
Someone is not telling us the truth here I would suggest, or we are being ripped off.
Well, lets wait and see what the President was actually paid last year in 2016 and the proof will be there for all to see by just using the remuneration % as done above.

CPAA Board Memo of 16th March 2017 page 6
The role of the President and Chairman is multifaceted. In addition to traditional governance requirements, the role includes significant international ambassadorial functions, with commitments to member engagement activity and advocating with international bodies, regulators and governments across our various geographies.
Q.

CPAA Q&A Reference Notes to provide members after the Corporate Governance Review in 2006
Why are you increasing the compensation payable to the President’s employers?
The Board believes that payment of higher levels of compensation to the employers of both the President and Deputy Presidents would serve to better recognise the actual workload and responsibility involved in these governance positions in today’s organisational environment.
Presidents nowadays are regularly spending at least 3-4 days per week, including weekends, on CPA Australia business rather than the 11/2 - 2 days envisaged in the current formula. Furthermore, Deputy Presidents currently spend 1 to 2 days per week, inclusive of weekends, on CPA Australia business for no compensatory remuneration whatsoever. The Board is of the view that employers’ compensation for Deputy Presidents should be formulated similarly to that for Presidents.
There was a high level of support during the consultation process for an increased level of remuneration for the President.
The Constitution currently allows for only limited compensation to the employer of the National President at 33%, and up to 40% in special circumstances, of the benchmark annual salary of the Auditor-General of the Commonwealth of Australia. The Board believes this level of compensation is inadequate to best serve the interests of the organisation to attract high quality members to this national role due to the ever increasing demands on the President to devote more time to it, especially the representational aspects.
The Board is therefore proposing that the Constitution be amended to allow for payments to the employers of the President (at least 50% and up to 60% of agreed benchmark) and the Deputy President(s) (at least 15% and up to 25% of the agreed benchmark).
CPAA Governance Review done by Cameron Ralph in 2006
Rationale for increasing the Presidents Remuneration
page 64.
10.2.1 President and Deputy
We advocate more realistic compensatory remuneration for both the President and Deputy and a limited arrangement of remuneration for the other Board Directors. The intention is simply to recognise the actual required workload involved in these positions today.
We suggest that the President is remunerated on the same basis as currently, but that the total possible amount reflect the reality that Presidents are spending 3-4 days per week, including weekends, on CPA Australia business – not the 1 ½ - 2 days envisaged by the current formula. We also recommend that the Deputy President(s) be similarly remunerated – for the 1 – 1 ½ days per week they will actually spend on the job.
Recommendation 15 page 65
That CPA Australia amend its ability to allow for compensatory remuneration to the employers of the President and Deputy President. The maximum permissible remuneration for the President should be lifted to the equivalent of 3.5 days per week (70%) of the agreed benchmark (currently the TEP for the Auditor-General of Australia). The maximum for the Deputy President should be set at 1.5 days per week (30%) of the same sum.

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