Five Things (it’s very brief, don’t worry)
1. Read all about it! - in todays AFR
2. A kind of summary
3. Members resolution
4. A call for action and information
5. A Quick Quiz, to finish on a lighter note
1. Read all about it! - in todays AFR
Do you think CPA members feel free to discuss issues they have with CPA Australia?
Do you think this is an example of bullying and intimidatory behaviour by the CEO and a director of CPA Australia?
Ask your discussion group leaders if they have received ‘warning’ calls from CPA in the last week?
2. A Kind of Summary
Marketing Expenditure at CPA Australia is ‘over the top', it brands Alex Malley and does little to lift the status of our profession.
Marketing as % of revenue at CPA Australia is around 19%, at IPA 9%, at ICAEW 9.5%, at CIMA 9.7%
It does not look good when we sponsor the NBL and one of our directors (G Wade) is also Chairman of that organisation.
Its whole thrust is not in accord with the Objects clause (5) in our constitution.
Board remuneration at CPA Australia is ‘over the top’, way over it.
For 11 meetings p.a. the President (currently Tyrone Carlin) gets about $400,000, the deputy presidents (J Dickson and D Ong) about $170,000, and the other 9 directors about $100,000. I contend they all should be reduced by 50% immediately. This is based on the the allocation specified in Note 17 of the Annual Reports (with the 2008 report providing the standard as nothing different has been stated to repudiate that basis).
Corporate governance at CPA Australia has significant weaknesses.
Members never vote directly for the board of directors.
There are too many corporate governance red flags flying in relation to the board, the representative council and the power of members.
I contend our organisation runs the risk of being controlled by a small group unelected by the members and with much to gain for themselves.
Members are 'kept in the dark’ on such matters, and the board should act.
I contend the recent warnings to leaders of discussion groups not to raise & discuss these matters is bullying and intimidation from Head Office.
I would like the board to investigate what has and is being said by the CEO and senior management and other directors to members to stop them from raising & discussing these matters freely (the above example in the AFR is one you could start with)?
Is it true that members who raise such matters as I have done are threatened with the consequences of bringing the organisation into disrepute?
3. A members resolution
I am preparing a Members Resolution for the board to reduce the boards remuneration by 50%.
I will phrase it so that it locks this into the current constitutional formula (being a % of the Auditor-Generals salary which is currently about $705,000).
I believe the maximum % needs to be reduced as per below.
Given the boards refusal to provide the exact %’s applied I can only assume that the maximum is paid as per note 17, 2008 annual report when it was last specified.
Currently the President (Tyrone Carlin) receives max. of 60%, about $423,000
The Deputy presidents (currently J Dickson and D Ong) receive max. of 25%, about $175,000
All the other directors (nine of them currently) receive max. of 15%, about $105,000
The total directors remuneration being up near the $1,700,000 p.a. mark.
Prior to Alex Malleys' leadership at CPA Australia the directors served voluntarily and only the President received a 40% fee.
The change has cost us nearly $1,500,000 p.a. at todays rates.
This is all for 11 meetings p.a..
If a director serves the whole nine year term (which is a time frame that beggars belief for a professional organisation), and rotates into the dep. president and presidential positions, they will be earning (at todays rate) about $1,300,000.
Three current directors have already served over the nine year limit due to exception clauses passed at AGM’s, and have raked in (by my remuneration analysis sheet sent to all) the following R Petty ($1,125,000), G Wade ($1,400,000), K Ryan ($600,000) in directors fees.
The resolution will reduce the %’s for the positions by 50%. They will still be very handsomely rewarded but it will not be at the current outrageous level.
To submit this resolution we will need 100 signatures.
So think about whether you would like to support this.
If we do not act now, nothing will change (think about that a bit).
This needs to brought to a head. It will then able all the other issues to be addressed by a fully awake board hopefully.
Currently the boards response on these matters is that the members wholeheartedly agree with what is happening under Alex Malleys leadership (or reign is ore appropriate if last Thursday nights performance is any indication).
Lets get fair dinkum here. Can you realistically seeing the current board reducing their fees to this sort of reasonable level without a nudge from the members?
Nor can I.
Please read note 4 below.
I’ll send it around later this week once I have worked out the 'logistics' of organising.
Someone might have some suggestions or be prepared to assist in some way.
The Corporations Act and our constitution have set down the legal parameters pretty clearly. Ideally it would be good to have this for consideration and voting at the AGM, but there is a two month time frame that the Board have to work with which means they could be uncooperative.
4. A call for action and information
Just two things
1. A call for action
Lets be realistic, how many members are prepared to put much time and effort into investigating and uncovering some of the things I have done?
You are all busy in your own work, you just pay your membership fees, and it provides the accreditation we have all earned to use the CPA logo etc.
You probably agree with some of the things I have raised but really you are quite content to leave it to the board and others.
After all, to do anymore would involve time and effort when really your investment in CPA Australia is minimal, perhaps a little under or over a thousand bucks.
That is the precise danger for any professional organisation.
Our individual investment is small, the cost of leaving or becoming involved (except of course for the ‘appointed' few) is too high or inconvenient, so lets just roll with the flow and let others worry about these things.
Can I encourage you this is perhaps the one chance we will have to redress some of these (what I call) wrongs going on in our organisation.
If you think the normal processes laid down will work then I suggest they haven't in the past and will certainly not in the future. The vested interests for the status quo to remain are too strong I suggest.
What you have to do is minimal.
Just support the resolution (that will then force these issues to be communicated to all members rather than just the minuscule number who now receive them), and it will sharpen up the board and senior management.
Think about it, we cannot do anything else to redress the situation.
I believe the other avenues are weighted very heavily not to do anything.
Just think about the clear bullying and intimidatory tactics adopted by Alex Malley (our CEO) and Graeme Wade (current director and immediate past president) at one of the largest CPA discussion groups last Thursday night in Sydney. That is not hearsay.
I have heard it from non-CPA members who were told by members who felt ashamed and thought it was totally bizarre.
How does tis reflect upon us?
If you think the board will act on these things given that one of them took part, then I think you are living in fantasy land.
We need to force their hand. Please consider acting now. I will send out the resolution later this week.
I’m sure you will get lots of calls from directors and division councillors, as you have in the past when these matters have been raised. Just ask yourself what really has that, and what will it, achieve(d)?
2. A call for information
I am compiling a few brief information sheets as I detailed in my emails. One of them is an historical view of what has happened at CPA Australia since Alex Malley has taken leadership. As part of the research for that I have been looking a bit more closely at The Alex Malley story which he very publicly and proudly tells everyone about.
Since we own the IP to The Naked CEO, I thought it might be worth checking out some of the details a little more closely.
Of particular interest is his Macquarie University days.
His time there and his departure.
If anyone has any information that could add to the picture that would be much appreciated.
It was a volatile time at Macquarie University around 2006 and 2007 for all sorts of reasons.
I’m still after a copy of the CPA Australia 2006 Annual Report if anyone has a copy I could borrow.
That period of 2006 and 2007 in our organisations history seem very important because major changes occurred then, that as I look back on now, have had consequences that perhaps we should have foreseen, and thus been more vigilant about.
So if anyone could assist that would be much appreciated.
5. A Quick Quiz
What is the acronym CPA an abbreviation of?
1. Certified Practising Accountants
2. Centre (for) Promotion (of) Alex
3. Something else.
Here are two clues
i. Why do you think the Find A CPA on the Website was disengaged after my first email?
Who does that advantage and who does it disadvantage?
Think about it, remembering we are a member organisation.
ii. Look at the home page of CPA Australia, and compare it to any other professional accounting organisation (CAANZ, IPA, CIMA, AICPA ICAEW etc) in Australia or around the world. Here is a screen shot of the CPA Australia page to set the scene.
Brett Stevenson CPA BComm MDiv
|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
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