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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AFR 11th Dec 2017 - Malley's links with Peter Wilson

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Brett Stevenson
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AFR 11th Dec 2017 - Malley's links with Peter Wilson

Post by Brett Stevenson » Mon Dec 11, 2017 4:15 am

Have a read, it is pretty self explanatory.
It gives a whole new meaning to the expression 'you wouldn't read about it'.
It seems we are being taken for a ride.
It always looked a wee bit suspicious that two of the directors came from the AHRI, and that one of them Peter Wilson was appointed Chairman before elected so by the board (but I put that down to a procedural matter).
Well it is such an amazing coincidence eh?
After an extensive search with hundreds of applications, we get two directors (one being the Chairman) who both happen to be on the board of the AHRI, an organisation which has in the last two years formed a close relationship with CPA Australia under Alex Malley. What does it say about the 'revitalised and new Nominations and Remunerations Committee used, or the new look Representative Council of just divisional representatives, or the board rump, or the assurances that things are so much better.
At what point can we as members take confidence in the leadership of our organisation because from where I am sitting it is not looking very good at present.
Maybe the divisional councillors and presidents might speak up this time?
Why is it that the media have a keener and better appreciation of the real issues than we as members?
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Red_Ferrari
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Re: AFR 11th Dec 2017 - Malley's links with Peter Wilson

Post by Red_Ferrari » Mon Dec 11, 2017 10:25 am

And like another narcissist (but a very successful one), Malley labels the media coverage that led to his ouster as "fake news". Yawn.

Referring to Sam Dastyari's dual sackings, Malley told Smith two Fridays back that he "haven't [sic] had one sacking. I got a payout, for the record." Say what? Here's CPA Australia's statement on June 23: "The Board decided to terminate Alex's contract" (also don't forget Malley was allowed to resign from Macquarie University in 2006 after being implicated in a cash-for-marks scandal). So whose news is fake?

And he got a payout alright. A whopping $4.9 million. CPA's board, stacked with Malley's longtime associates, increased his termination entitlement from one year's pay to two years' in December 2014. Three months later, an independent review advised the board that this arrangement was "significantly above the anticipated range [of] terms and conditions consistent with ordinary commercial expectations in Australia". How did the CPA board respond to that advice? Well, 18 months later, in October 2016, during a board meeting for which no minutes were taken down, it increased Malley's already over-the-top terms and conditions from two years' severance pay to three. This, McPhee's independent review tepidly found, "reflects very poorly on the former board". Malley now claims "there was a process followed". The evidence suggests the process was actually subverted, by his mates, to unduly enrich him.
Presumably not satisfied with bringing the accountants' union to its knees and making off with $4.9 million of members' loot for his spectacular failure, Malley chips away at his former cash box. The terms of his outrageous termination agreement prevent CPA from saying anything about him
(or so it claims), so why the hell doesn't it prevent him from saying anything about CPA?
This whole process stinks. These mental giants on our board (appointed by The Representative Council, not us), increased any termination payment from one year to two years ... to there years. Who on the board is related to Nostradamus .. did they know it was coming?

Secondly, why do they pay his termination payment in one lump sum? If they paid him in instalments (like, say, Amber Harrison), they could stop the payments if he didn't shut up ... and he hasn''t.

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Brett Stevenson
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Re: AFR 11th Dec 2017 - Malley's links with Peter Wilson

Post by Brett Stevenson » Mon Dec 11, 2017 11:10 am

I reckon the only way we are ever going to get to the bottom of some of these matters, and they really are extraordinary if you just look at Malleys termination pay and the CPAA Advice scandal, is for legal action to place the people concerned in a court of law so the truth can be established.
I was hoping the Independent Review might have sorted this out but it really comes across like a great big professional whitewash with no-one to blame for these things, and quite amazingly discourages legal action by saying these maters are 'legally' okay.
Just have a look at what they said on the CEO's termination pay. I still fund it unbelievable that an 'in-camera' board meeting with no notes and discussion papers can approve a three year termination pay when anything beyond one year is going beyond the law for listed companies, and that they had been told in the previous year that two years (then applicable) was way over the top.
You ask yourself would any reasonable person in the position of the directors have approved such a deal. I suggest not, and that is the criteria or test of the law.
Don't et me started on CPAA Advice where these people extracted almost $1.5 million in remuneration for themselves over a 19 month period when the total revenue of the organisation was less than $50,000 with a loss of then $7,200,000. And what do the IRP say? Pretty well nothing - they just say the model needs to be looked at with another review. Unbelievable.
I reckon Corporate Governance CPA Style means no responsibility and accountability is the way to go for directors.
Crikey this is crazy territory.
And what do out wonderfully silent divisional councillors and Presidents have to say on this? I'm still listening to hear anything at all. They seem to want to continue with the fiction that all is well, and lets just press on giving presidential awards to CPAs and FCPA's as if good PR will resolve the matters..

JWheldon
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Re: AFR 11th Dec 2017 - Malley's links with Peter Wilson

Post by JWheldon » Mon Dec 11, 2017 2:32 pm

A thought.

Wasn't it reported that Alex Malley set the remunerations at CPAA??

So maybe he decided to increase his own termination payout each year, because he was given the power by the board? A board which had more important things to consider, like the NBL corporate boxes, or the tennis centre grand final tickets, or the work related UK trip and inadvertently attend the tennis. Maybe how to spend the increase in the marketing revenue to maintain the same percentage spend rate since 2006?

The board had the secret, no minutes taken meeting, because having given Alex Malley the power to authorise the remunerations, they had to work out how to deal with this out of control individual. Maybe Alex would have increased his own termination payout in 2017 from three to four years, plus increased the bonuses to all his supporters?

Oh well, just like the JFK documents, we may have to wait 30 years or so for the real documents to be released, to get at the truth?

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The Nude CPA
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Re: AFR 11th Dec 2017 - Malley's links with Peter Wilson

Post by The Nude CPA » Mon Dec 11, 2017 4:52 pm

Brett Stevenson wrote:
Mon Dec 11, 2017 4:15 am
After an extensive search with hundreds of applications, we get two directors (one being the Chairman) who both happen to be on the board of the AHRI, an organisation which has in the last two years formed a close relationship with CPA Australia under Alex Malley.
The recruitment process needs to add a conflict of interest/independence issue checklist item.

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