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CPA Australia’s chief executive, Alex Malley, has defended the remuneration of the association’s executives and directors, and revealed he has engaged the police following a series of personal threats made against him.
Exclusive: CPA chief exec reveals toll of rebellion saga
01 June 2017
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8 minute read
As reported earlier today, CPA Australia has disclosed the salaries of key executives, including Alex Malley, and each director of the association and its subsidiary, CPA Australia Advice.
This follows swelling discontent from a group of CPA members, led by NSW-based accountant Brett Stevenson.
The salaries paid are notably higher than that of other representative bodies, but Mr Malley noted the larger size and scale of CPA Australia when compared to bodies such as Chartered Accountants Australia and New Zealand (CA ANZ.)
“CPA Australia has record numbers in most of its metrics. We have a 98.3 per cent retention rate, we have a surplus that we’ve accumulated that’s double what we achieved in the 120-odd years before it,” Mr Malley told Accountants Daily.
“CPA Australia, in turnover, is now …certainly within the top 10 in its space in the world. We’ve had record growth in the Asian market and we have a lot to be proud of. All of these are realities of our business,” he said.
“We’ve now attracted some 7,000 members from other bodies,” he said.
Mr Malley feels that CPA Australia has been unfairly targeted and scrutinised given its growth under his leadership, and when compared to the public treatment of other professional bodies.
“In contrast, the CA ANZ, whose record stands as our does publicly, has not had one comment about performance,” Mr Malley said.
He has also called on other leaders of representative bodies, including the new chief executive of CA ANZ Rick Ellis, to equally disclose details of their remuneration.
A member rebellion - which has seen movements such as petitions for remuneration disclosure and requests for the full register of members - is not reflective of the entire membership, Mr Malley believes.
“We have 160,000 independent-minded members. In a large population of any kind, you will never please all the people all the time,” he said.
A principal complaint of the member rebellion has been the speed at which CPA Australia has responded to their requests for remuneration disclosure. Mr Malley said the organisation had to take a structured and considered approach to disclosure, which is why it was not immediate.
“We looked at it and decided we don’t change policy without thinking it through, we don’t change policy because the media says we should,” he said. “We were working through that calmly, and properly, in a dignified way.”
The toll of the member rebellion and scrutiny of Mr Malley’s leadership has been significant, and has spilled into his personal and family life.
Mr Malley has received death threats, faeces in the mail, and has employed security at his own cost to monitor his home. He has engaged with the police to deal with some of these matters.
“On the iceberg principle - people see a little point above the water. The enormity of what has been going on under the water, the impact on people, the impact on families, is absolutely unbelievable,” he said.
“I have seven children, they are all impacted by this, and I have a family that lives in a home that has now been publicly recorded and addressed. If anyone who has been critical of me thinks that’s ok, then I’m comfortable to say I agree to disagree with all of them,” he said.
Moving forward, and in light of the president and chair Tyrone Carlin standing down, as confirmed this morning, Accountants Daily asked Mr Malley about the future of his leadership, which he was positive about.
“Of course that’s always subject to the board. We’ve got the next stage of work to do and we’re encouraged and inspired by our results so far,” Mr Malley said.
More to come.
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- If you cannot handle the pressure of the job Alex RESIGN!!!
You have made a mess of everything. You have destroyed the value of the brand.
Yes - if you make something rare easily obtainable you will increase membership numbers. It is not a sign of success by you.
And this website is losing credibility by simply playing the violin and downplaying the issue.
This is massive. And Malley is a self serving CEO.0 - Please resign Alex. Every word you make just damages the brand.
If you have a sense of morality you will resign.
An investigation is not adequate. The people you have chosen are clear supporters of you. You are the worst CEO in history - you just care about bumping numbers and nothing about members.
Get out.0 - All that money being spent making the CEO well known, not CPA's. It stinks to high heaven. His personal ego massaged and lifted using millions of members funds.
The only way you should be able to get on the board is a vote of members and the current lot should all be sacked and kicked out of the organisation.0 - As a suburban accountant I question whether to now renew my cpa membership. Friends who I attended university with are members of various organisations and often we compare our experiences when we catch up. A recent example is around the recent superannuation reforms which are the biggest changes to super in 10 years. The ICAA and SMFA bodies are releasing constant advice and content to their members and we have not received one piece of advice.0
- Mr Malley is a complete fraud.0
- I tried some years ago to get some accountants investigated by the CPA. I was told the CPA would prefer it if I could have the accountants convicted at my expense. (they run another accounting body)Then the CPA would take action. Recently I tried to check the status of a CPA who made statements in a supreme court case. I could not get any information as I could only provide the name and address. CPA staff wanted the date of birth and membership number. It was suggested that I put my request in writing and membership would consider my request.
Is it true that one of the board members is also the chair of the remuneration committee?
it cost a lot of money to attend functions to keep the CPA status. We need more access to cheaper information and compliance.
The superannuation changes means that whilst I can prepare and lodge Income tax returns, I cannot recommend the setting up of one and cannot advise clients to wind it up. We have lot a lot under this board.
0 - Thank you0
- As a 71 year old retired membership type, I can say that none of this surprises. In 1967 I was so proud to graduate and become an A A S A and of course later a C P A. , however it always rankled how expensive C P A charges were. Membership goes up each year by more than the Brisbane Club or Tattersalls. Once I had a wife, mortgage and children I like many of my fellow ( A T O ) accountants were forced to attend other professional bodies' lectures and courses. I am not surprised that now people are getting excessive wages. Over all those years of my membership the money had to go somewhere as it never came back in members services. Good luck to Brett Stevenson.0
- As a member of CPA Australia for over 45 years I have become increasingly concerned about its internal governance standards, a situation exacerbated further by the revelations in the recent circular to members. It should be noted the disclosure by CPA Australia of its executive and board remuneration packages, along with a 30 page self justification memorandum has only occurred because 100 members demanded access to this information by reference to requirements of the Corporations Act. Further revelation in AFR that the interlocking relationship between the CPA board and it acolytes only goes to reinforce the presumption, to reference Shakespeare, is “that something is rotten in the state of Denmark”.
In what appears to be excessive executive remuneration, interlocking pecuniary interests and an outward impression of nepotism, favouritism and backscratching one can only wonder how our professional body has allowed itself to have its reputation besmirched by what can only be seen as self-interested manipulation. The sudden resignation of the CPA Chairman, Tyrone Carlin, Deputy Vice Chancellor of Sydney University raises even more questions. Furthermore the murky financial machinations of CPA Advice, a wholly owned subsidiary representing currently about 27 financial planners is hidden within the CPA consolidated accounts.
As I have already recommended the only way to clear the air is to have all of these questions reviewed by an independent expert in corporate governance, a recommendation that has to date not been acknowledged. Until such an enquiry is held, the ongoing concerns about CPA governance standards, including the sudden shifting the AGM to Singapore, the use of a single preferred training entity for CPA examination training and what appears to be excessive remuneration for both board and executive members in executive remuneration will not go away.
0 - Classic group think. I'm ashamed it happened on my watch. Kudos to Brett for being this into the sunlight.0
