MORTGAGE brokers work for all kinds of incentives. Money. Bonuses. Even trips to the Playboy Mansion.
Australian Finance Group last week took more than 100 of its top brokers on a five-day trip to the US. It's an annual trip sponsored by big players in the industry, including the big banks, to reward the gun performers. While the visit included such activities as a cycling tour and conferencing sessions, it was suggestions of "a charity function at the Playboy Mansion" in an industry newsletter that piqued our interest.
After all, apart from a keen interest in vital statistics, we were unclear of synergies between Hugh Hefner's house of flesh and the mortgage broking industry.
AFG managing director Brett McKeon was quick to insist it was all a terrible misunderstanding. You see, the event was not one set up by his organisation. And it was a charity event. One supporting anti-smoking, no less.
McKeon assures us there were as many female as male brokers in attendance and none declined the invitation or were offended by the visit. He felt it worthwhile to point out that none of the major banks that benefit from AFG's mortgage broking activities was in attendance. And he was also keen to stress the trip to the Playboy Mansion was paid for by AFG and not the banks.
His sheepishness may have something to do with the fact that major banks sponsor the overseas trip and may not like being linked with a Playboy Mansion visit.
Why choose to attend? "We thought it's an iconic part of Hollywood, it's a charity function and gives our members an opportunity to attend the mansion. We won't be doing it again. Next year's trip will be a bit more sedentary.
"We've had a bit of blowback," he said.
If the hats fit . . .
DAVID Gonski has had many and varied roles in his well-connected career. A chairman's hat here, an advisory role there.
But we're pleased to see his latest role as executive headhunter adding a touch of diversity to his resume. Particularly when he can play find and seek without moving from in front of the mirror.
Gonski searched long and hard for the Gillard government to find a new head of the Future Fund, sounding out directors for their preference, before miraculously finding the new man's smiling visage in the bathroom mirror.
So, we were taken by the announcement that Gonski has taken the gig to help the New South Wales government find a new boss for Sydney's much-loved railway system.
Pleasingly, there are two chief executive roles to be filled.
Given Gonski's eponymous review of the education sector has been finalised, we're certain there's plenty of room in his diary to head both the Future Fund and drive the 6.15am City Circle service to the CBD.
Hands-on counting
COUNTING large numbers is a tricky business. Particularly when one is forced to resort to using a second hand.
So, imagine the distress felt by senior executives at Toll Holdings last week when the company's full-year report came out detailing their salaries only for the poor chaps to find a series of rather unfamiliar numbers in the report.
Perhaps it was the muttering in the tea room. Or questions about how much so-and-so got.
But yesterday Toll was forced to amend the rather keenly observed remuneration table for its top executives, 'fessing to a few errors.
Surely former managing director Paul Little hadn't cross-checked the pay slips and figured he'd been short-changed? Alas, no. Turns out problems emerged between "incorrect allocation" between cash salary and non-monetary pay for some executives.
So, while the market was told last week Little took home $1.2 million in cash salary last year, his pay slip showed a slightly lower number. Pleasingly, though, there were some other benefits that ensured the total number remained unchanged at $6.4 million.
Similar slip-ups were recorded in the pay disclosure of most of Toll's top 10 executives.
Heir rescue
WESTPAC heir apparent Brian Hartzer has secured the services of Melanie Evans as his chief of staff, after the former BT superannuation manager's role was made redundant last week.
Brad Cooper, boss of the Westpac-owned BT, performed some management musical chairs, which left the highly regarded Evans on the outer.
Hartzer, the new Australian financial services head, has appointed Evans to a gatekeeper role similar to one at CEO Gail Kelly's office that will see Evans well positioned should Hartzer one day assume the top job.
Tigers burn bright
SPOTTED on the wharves outside CBD's Sydney hustings: colourfully dressed players from rugby league's Balmain Tigers boarding an All Occasions Cruises dinghy. At least they were contained on a boat, we hear you cry. And clothed.
Of greater interest to your diarist, Balmain legend Benny Elias is in all sorts of bother trying to develop the old Balmain Leagues Club site on Victoria Road while bro Joe Elias runs All Occasions Cruises, which was awarded the Blackwattle Bay development. You win some, you lose some.
mevans@smh.com.au
Twitter: @mevanssmh
Frequently Asked Questions about this Article…
What happened on the Australian Finance Group (AFG) overseas trip that made headlines?
AFG took more than 100 of its top mortgage brokers on a five-day trip to the US, and an industry newsletter’s suggestion of a “charity function at the Playboy Mansion” attracted attention. AFG managing director Brett McKeon said the Playboy connection was a misunderstanding, that the visit was tied to a charity supporting anti-smoking, and that AFG — not the major banks — paid for the mansion visit.
Did the major banks attend the Playboy Mansion event linked to the AFG trip?
No. While major banks are among the sponsors of AFG’s annual overseas trip for top brokers, the article notes that none of the major banks that benefit from AFG’s mortgage-broking activities were in attendance at the Playboy Mansion function.
Why should everyday investors care about mortgage broker incentives and overseas trips?
Mortgage-broker incentives — including cash, bonuses and sponsored trips — can affect industry relationships and reputations. The article highlights that such trips are funded or sponsored by big industry players and can create blowback or sensitivity for sponsors, which is useful context for investors tracking lender distribution channels and reputational risk.
How did AFG’s managing director respond to criticism about the Playboy Mansion visit?
Brett McKeon said the event wasn’t organised by AFG, described it as a charity function (supporting anti-smoking), insisted there were as many female as male brokers in attendance and that no one declined or was offended, and added they won’t be doing that type of visit again after some blowback.
What errors were found in Toll Holdings’ executive pay disclosure?
Toll Holdings had to amend its full-year remuneration table after discovering errors in the allocation between cash salary and non-monetary pay for several senior executives. For example, while the market was told Paul Little took home $1.2 million in cash salary, his pay slip showed a slightly different number, though his total remuneration remained $6.4 million.
How can mistakes in executive remuneration reporting affect investors?
As illustrated by Toll’s correction, errors in pay disclosures can force a company to reissue information and may raise questions about internal controls and transparency. Investors typically monitor accurate remuneration reporting as part of assessing governance and management accountability.
What leadership moves at Westpac and BT were reported that investors might note?
Brian Hartzer, tipped as Westpac’s heir apparent and new Australian financial services head, appointed Melanie Evans as his chief of staff after Evans’ role at BT (a Westpac-owned business) was made redundant during a management reshuffle. The article notes Evans’ new role is a gatekeeper position similar to one in CEO Gail Kelly’s office.
Who is David Gonski and what new role did he take on according to the article?
David Gonski, known for many chair and advisory roles and for leading the Gonski education review, has been helping the New South Wales government as an executive headhunter to find new leadership for Sydney’s railway system — a task that, the article wryly notes, involves finding two chief executive roles to be filled.
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