Alex Malley, the CEO of peak accountancy body CPA Australia, has had his contract terminated by the board, effective immediately.
Malley, who came under criticism from members for his $1.8 million pay packet, will walk away with a $4.9 million payout.
CPA Australia president and chairman Jim Dickson announced last night that the board made the decision to terminate the CEO’s contract when it met on Friday “in order to allow CPA Australia, CPA Australia staff and Alex to move forward”.
Seven of 12 members CPA’s board had resigned in recent weeks and an independent review into the organisation, headed by Sir Angus Houston, a former head of the Australian Defence Force, was announced earlier this month.
The organisation has been in turmoil for several months over concerns about Malley and his remuneration, bullying allegations, and losses of the organisation’s consulting business.
Members were concerned about expenditure, especially the promotional budget, and disclosure by the organisation.
Announcing the investigation on June 16, Dickson, CPA’s newly appointed chairman, stood by Malley, and last night thanked him “for the significant contribution he has made over the past seven and a half years”.
The chairman said the former CEO had an ambitious vision and delivered sustained growth.
“Alex’s legacy is an organisation with a global footprint and an ambitious outlook. We know that he will be very much missed by his colleagues and friends at CPA Australia,” he said.
Chief operating officer Adam Awty, has been appointed as interim CEO, on his current remuneration, as the search for a new leader gets underway.
Dickson said the Board will soon seek expressions of interest for the casual vacancies from the recent resignations, with an October 1 deadline to ensure a minimum of eight directors.
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