Factbox-Scandals that rocked corporate Australia in 2024
(Reuters) - Australian 'Big-Four' bank ANZ Group's shareholders are set to vote on outgoing chief executive Shayne Elliott's pay this week, while the lender is being investigated for alleged bond-trading misconduct.
Australia's corporate regulator pulled up ANZ in May for the alleged breaches that it said occurred last year.
The CEO's exit in mid-2025 will mark the end of Elliott's nine-year tenure that saw him steering the bank through a Royal Commission inquiry in 2017 that had found widespread shortcomings in the financial sector.
Elliott's is the latest among top-brass management exits at Australian companies this year that have followed scandals.
Here's a look at five major companies that saw high-profile exits after accusations of malpractice:
STAR ENTERTAINMENT
Star Entertainment has seen a top management exodus this year after it faced a second inquiry into its Sydney casino operations in February.
The company announced the departure of its CEO Robbie Cooke and Chief Financial Officer Christina Katsibouba in March and exits of Chairman David Foster and Jessica Mellor, the CEO of its Star Gold Coast casino in Queensland, in April.
In October, the New South Wales gaming regulator allowed the Sydney Casino (EPA:CASP ) to stay open, but levied a fine and appointed a manager to oversee operations until March 2025.
Star Entertainment has said it looks forward to working with the regulator on the remedial measures.
Its stock price has fallen more than 60% since Feb. 16, the last trading day before the announcement of the second inquiry into the Sydney casino.
WOOLWORTHS
In February, Australia's biggest grocer Woolworths Group said its CEO Brad Banducci would retire after eight years at the helm.
The supermarket chain, also known as Woolies, has faced political pressure over high grocery costs and a public inquiry into suspected price gouging.
Woolies has also been sued by the consumer watchdog for allegedly misleading shoppers about discounts.
Banducci has said his departure is unrelated to the public backlash amid a cost of living crisis.
Woolies has defended the price rises in written submissions to the enquiry.
Its share price has declined over 10% since Dec. 1, 2023, the last trading day before the public inquiry was announced.
MINERAL RESOURCES
In October, Mineral Resources' billionaire founder Chris Ellison admitted failure to properly disclose revenue from his overseas entities.
A month later, the Perth-based mining services firm said Ellison will be leaving after an internal probe found he used company resources for personal benefit and evaded taxes.
Its shares have fallen 23.5% since Oct. 18, the last trading day before Ellison's admission.
WISETECH GLOBAL
Australian software giant WiseTech Global announced in October that its chief executive, founder and biggest shareholder, Richard White, would step down after media reports of allegations about his personal life, including payments to an alleged former lover.
WiseTech's shares have risen almost 20% since Oct. 24, the day White stepped down as CEO.
A lawsuit between White and his alleged former lover has been settled.
ANZ GROUP
The country's No. 4 lender by mortgages, ANZ Group, in December appointed former HSBC executive Nuno Matos as its next chief executive, as CEO Shayne Elliott will retire in July 2025 after a nine-year term.
The change comes amidst an investigation by Australia's corporate regulator for suspected violation of laws by ANZ in executing the issuance of 10-year treasury bonds in 2023.
ANZ's stock price has fallen 5.5% since market open on Dec. 9, the day it announced the new CEO.
The lender has said it reported to the government that it logged incorrect bond trading data due to "process and data extraction errors" and that its initial analysis had not identified evidence of market manipulation.
Source: Investing.com
