Money Minute – June 26 2017 “Naked CEO High and Dry”

Alex Malley Naked CEO High and Dry

Ross Greenwood: Now listen, in any workplace one of the most guarded secrets is how much everyone’s paid.

Because nothing causes bigger riots in the workplace, and headache for the boss, if people compare their salaries.

But there does come a point where knowing a person’s pay is important – politicians, senior public servants… after all we pay their wages.

Public company executives – because shareholders are the owners, they deserve to know how much the management’s paid and whether they deserve it.

So I turn to the case of Alex Malley, who on Friday, was sacked as CEO of accounting  body CPA  Australia.

It represents around 160,000 accountants, here and around the world.

Malley’s high-profile – known on this network through his paid-for interview  the program on Sundays called In Conversation , and is heavily publicized book  The Naked CEO.

He’s been pursued relentlessly, chiefly by the Australian Financial Review and it’s columnist Joe Aston.

The corporate cop ASIC is investigating one aspect of CPA Australia, but on the surface Malley’s done nothing wrong – except being high-profile.

Except there’s one thing the board and Malley got wrong, and Aston got right.

For someone whose gaining such a high profile, which was being paid for by CPAs member accountants – his salary should’ve always been disclosed .

Under pressure, finally it was revealed – $1.8 million a year  but it was  too late.

The damage was done, the board split, many resigned, and ultimately there was no choice but to let Malley go.

Now they have to explain to members the $4.9 million golden handshake.

But as I say, there’s big implications for anyone working with members.

Big superannuation funds is one classic example that will come in the future.

Markets

Aussie dollar 75.6 US Cents

Money Minute – June 5 2017 Market Reaction

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