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Remuneration CPA Advice

Posted: Thu Jul 06, 2017 9:59 am
by Stomper
Am yet to receive a response to this request submitted via the LinkedIn CPA Members Australia Group
Hi Jillian, It would have been nice to have seen the following......

"Until the completion of the Independent Review the Board will forgo all fees, including those from CPA Advice"

Could you please pass this suggestion onto the Board and perhaps, in the spirit of reconciliation, they could issue this as a goodwill gesture to members.
https://www.linkedin.com/groups/103561/ ... 8344410116

Interestingly, despite CPA Advice having only 26 advisors, the Directors and Executives would still seem to be skimming $1m in fees and wages from this compliance dud.

In comparison SMSF ADVISERS NETWORK PTY LTD Licence Number: 430062, run by the NTAA, which has over 1,000 Representatives was started in 2013 to support accountants to comply with the new laws.

Based on the accounts of NTAA the directors / executives receive little or any additional remuneration for activities associated with their wholly owned subsidiary, which cost significantly less than the $12m CPA Advice took to establish.... The comparison is staggering and will form part of my submission to the "Inquiry".

Shame on the Board/Executive for not waiving their fees while this inquiry is ongoing!!!

Re: Remuneration CPA Advice

Posted: Fri Feb 09, 2018 2:13 pm
by The Cranky CPA
Just received the Statement of the CPA Australia Board it is interesting to read that this statement omits under the "Director and Executive Remuneration" section the Godfrey Remuneration Group Letter bit:
Further it is GRG’s understanding that the Board has: Adopted lower remuneration for the CPA Australia Advice Boards - $90,000 for the Chair and $45,000 for a director as from 1 January 2018, with a fee for Board committee work of $10,000 per Director (excl the Chair).

Re: Remuneration CPA Advice

Posted: Fri Feb 09, 2018 2:22 pm
by Stomper
The Cranky CPA wrote:
Fri Feb 09, 2018 2:13 pm
Just received the Statement of the CPA Australia Board it is interesting to read that this statement omits under the "Director and Executive Remuneration" section the Godfrey Remuneration Group Letter bit:
Further it is GRG’s understanding that the Board has: Adopted lower remuneration for the CPA Australia Advice Boards - $90,000 for the Chair and $45,000 for a director as from 1 January 2018, with a fee for Board committee work of $10,000 per Director (excl the Chair).
And the gravy train continues - surely CPA Advice Directors should be the same as CPA Australia with NO additional remuneration - any why didn't they disclose this point??? What nonsense!

No wonder the Board won't answer my question with respect to whether fees were still being paid to CPA Advice directors or executives!!!

Re: Remuneration CPA Advice

Posted: Fri Feb 09, 2018 4:42 pm
by GenYCPA
My understanding is that any executives from CPA Australia that serve CPA Australia Advice will not be entitled to any additional remuneration.

Announcement - 4. Director and Executive Remuneration
the higher duties allowance associated with CPA Australia Advice where it existed for selected senior executives at CPA Australia (e.g. the two COO roles at $185k) has been removed
Issues Paper 14.2
There will be no additional remuneration for any subsidiary directorship.
Furthermore, they have said no board members would sit on subsidiaries (including CPA Australia Advice):
The Board has also determined that as from January 2018, no directors of CPA Australia are to sit on the Boards of any CPA Australia subsidiaries.
And Item 12 from the Issues Paper proposes a change to the constitution to make it clear that there are no additional fees to be paid to directors sitting on any subsidiaries:
Recommend defining “Directors Fees” as all-inclusive. Amend Article 45 of the Constitution where relevant so that the amount paid to a Director for all duties including acting as a Director of any related body corporate as that term is defined in Section 50 of the Corporations Act 2001 and serving on a Board Committee.
And to be fair to the directors they did share the letter and hence "disclosed" the point whether or not it was explicit in the announcement:
Remuneration levels for the CPA Australia Advice Board have also been set at a lower level

Re: Remuneration CPA Advice

Posted: Fri Feb 09, 2018 5:43 pm
by The Cranky CPA
GenY CPA wrote:
And to be fair to the directors they did share the letter and hence "disclosed" the point whether or not it was explicit in the announcement:
Remuneration levels for the CPA Australia Advice Board have also been set at a lower level
Still you have to wonder about the level of remuneration for such a small entity. Not sure how many advisers there are registered under CPA Advice, but last I heard was less than 46. Little to no revenue, but substantial expenses associated with it (Director Fees are part of these expenses). Makes you also wonder why they did not include this in the remuneration statement and just mentioned "lower remuneration". Might be because CPA Advice is still a controversial issue and many members would like to see it closed down?

Re: Remuneration CPA Advice

Posted: Fri Feb 09, 2018 9:28 pm
by JWheldon
This reminds me of a Yes Minister episode. Maybe this is a type of discussion Alex Malley had with his advisers on getting wage increases through with the board. Very funny.

Humphrey seeks advice from Sir Arnold on how to adjust figures in getting through civil service wage increase from government. From BBC "Yes Prime Minister" - Episode 5 A Real Partnership.

https://www.youtube.com/watch?v=D1r8iQk ... s&index=41