Article by Joe Aston from AFR on April 30
http://www.afr.com/brand/rear-window/al ... 430-h0zg6b
In an email to all 163,750 members on Friday, CPA Australia gave notice of its annual meeting to be held in Melbourne on May 22. The AGM in Jeff's Shed (a long way from last year's in Singapore) is scheduled just a week shy of a year since the accounting body was forced by irate members to reveal the exorbitant $1.8 million salary of its celebrity-seeking CEO Alex Malley, which set off a chain of events culminating in Malley's sacking and the resignation of the entire board.
CPA released its annual report for calendar 2017 on April 5, revealing an objectionable $10.7 million paid to key management personnel (nearly all of them currently floating slowly to earth in golden parachutes), $5.8 million to Malley, and accumulated losses of $11.2 million on the financial advice subsidiary launched with Malley in 2015 by then ASIC chairman Greg Medcraft (whose best mate is AMP's now infamous outgoing general counsel Brian Salter; what does Proverbs 13:20 say again about the company one keeps?).
Right before the last of Malley's allies quit the board, they commissioned an "independent" report – as independent as Clayton Utz's for AMP – into their own governance failings, chaired by another unapologetic Malley friendly, Ian McPhee. For this utter whitewash, the annual report divulged, members paid $996,000 – though how much silver McPhee and his panel invoiced Malley's retreating forces for their amnesty papers remains, sickeningly, undisclosed.
What else did the annual report lay bare?
CPA spent an absurd $6 million on travel and catering in 2017, $846,000 of it by the board and $820,000 on "corporate support" (AKA the Malley Express to Chez Alex, with the Art Series chardonnay if you will).
What a bargain!
And despite Deloitte's oversight of CPA's bungled remuneration disclosure last year, the firm remains ensconced as the organisation's house auditor, with Mark Stretton still signing partner. Its punishment? Fees of $410,496, up 38.7 per cent on the previous year!
On June 16 last year, after seven resignations from the 12-strong board left it inquorate, the remaining five directors – still steadfastly behind Malley – used emergency powers to appoint a sixth, Tim Youngberry. What a surprise, then, to find (buried in an explanatory note) that Youngberry was already on Malley's payroll as a consultant! From April 10 through the early weeks of his board membership, CPA paid Youngberry's company $44,188 plus GST. An absolute bargain for loyalty rendered! You honestly could not make this lot up.
And while the new board is populated entirely by fresh faces, the same old apparatchiks inhabit the periphery. Still representing CPA Australia on international committees (see above re: travel and catering) are McPhee, low-profile Westpac executive Rachel Grimes (insert royal commission gag here), former president Penny Egan (who joined the CPA as a volunteer, left a decade later with $1.1 million of fees in the bank, and coincidentally claimed the day before Malley's sacking that his hiring "was, and continues to have been, an excellent decision" and that "subsequent boards have had no reason to question his integrity") and Malley's lieutenant from day dot, Richard Petty (the university lecturer with the $13 million house), whose CPA-sponsored lark with the New York-based International Federation of Accountants expires in 2020. "No current directors were involved in recommending [him] to his position on IFAC" a CPA spokesperson assured us. Er, so why not rissole him (and the positively shameless Egan) post-haste?
Egan and another of Malley's former presidents, John Cahill (nearly $1 million of fees in his skyrocket after six years on the board), represent CPA on the Accounting Professional & Ethical Standards Board (both paid $43,800 to attend five meetings each year; ludicrously, the APESB spends 22 per cent of its annual revenue on directors' fees – is that ethical or just ironic?). Both are CPA life members, as are Malley, Petty and Malley's other enforcer Graeme Wade (chairman of the National Basketball League, which – surprise, surprise – CPA sponsored!). Back to that CPA spokesperson: "The board has also heard concerns about these individuals retaining life membership. The board is in active discussions with divisional councils about the issue." We'll see what that comes to.
And this is all before we get to just the latest tricky president Peter Wilson's proposed – and opposed – changes to CPA's constitution going to the AGM. We'll have to save that for another day …
Read more: http://www.afr.com/brand/rear-window/al ... z5EELhhur3
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|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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30 April 2018 - AFR Joe Aston Rear Window - Alex Malley gone, but CPA Australia still up to its old tricks
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