Mortgage brokers work for all kinds of incentives. Money. Bonuses. Even trips to the Playboy Mansion.
Last week, Australian Finance Group took more than 100 of its top brokers from around the country on a five-day trip to the US. It's an annual trip sponsored by top industry companies including the big banks, rewarding the gun performers.
While the visit included such eventful 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.
The AFG managing director, Brett McKeon, was quick to insist it was all a terrible misunderstanding. You see, the event was a pre-organised shindig, 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 none of the major banks that benefit from AFG's mortgage broking activities were 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 the big banks sponsor the overseas trip and may not like being associated with a Playboy Mansion visit.
Did everyone at least get to hang out with some Playboy bunnies?
"I didn't see anyone running around naked," McKeon assured us.
Why choose to attend? "We thought it's an iconic part of Hollywood, it's a charity function and give 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 added.
Gonski's gig
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 head hunter 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 helped the Gillard government search long and hard 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 Gonski has taken the gig to advise the NSW government to find a new boss for Sydney's much-loved railway system.
Pleasingly, there are two CEO roles to be filled.
We would never suggest the svelte Gonski would ever qualify as the Fat Controller.
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.
Toll slips up
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.
Yesterday Toll was forced to amend the rather keenly observed remuneration table for its top executives, 'fessing to a few errors.
Surely, the former managing director Paul Little hadn't cross-checked the payslips 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 payslip showed a slightly lower number. Pleasingly though, there were some other benefits that ensured the total numbers remained unchanged at $6.4 million.
Similar slip-ups were recorded in the pay disclosure of most of Toll's top ten executives.
Westpac super sub
The Westpac heir apparent Brian Hartzer has secured the services of Melanie Evans to be his chief of staff, after the former BT superannuation manager's role was made redundant in a reshuffle last week.
Brad Cooper, the chief of the Westpac-owned BT, performed some managerial 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 the structure of the CEO Gail Kelly's office that will see Evans well positioned should Hartzer one day assume the top job.
Balmain attraction
Just another Mad Monday celebration in the big city. 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, the Balmain legend Benny Elias is in all sorts of bother trying to develop the old Balmain Leagues Club site on Victoria Road while his bro Joe Elias runs All Occasions Cruises which was awarded the Blackwattle Bay development under Joe Tripodi's stewardship. You win some, you lose some.
mevans@smh.com.au
Twitter: @mevanssmh
Frequently Asked Questions about this Article…
What was the AFG Playboy Mansion trip and who attended?
Australian Finance Group (AFG) took more than 100 of its top mortgage brokers on a five-day annual trip to the US. The visit included conferences, a cycling tour and, according to an industry newsletter, attendance at a charity function at the Playboy Mansion. AFG managing director Brett McKeon confirmed brokers attended and said there were as many female as male brokers present.
Did the big banks pay for or attend the AFG Playboy Mansion event?
Brett McKeon said the Playboy Mansion visit was paid for by AFG and not by the major banks. He also pointed out that none of the major banks that benefit from AFG’s mortgage-broking activities were in attendance.
Was the Playboy Mansion visit described as a charity event?
Yes. McKeon insisted the Mansion appearance was a pre-organised charity function and said it supported an anti-smoking cause. He emphasised the event was not organised by AFG in a way that implicated its bank sponsors.
How did people react to the AFG trip and will AFG do it again?
McKeon said the company received some blowback over the visit. He told reporters, 'We won't be doing it again. Next year's trip will be a bit more sedentary,' indicating AFG does not plan to repeat that particular stop.
Could the AFG Playboy Mansion controversy affect investors or AFG’s reputation?
The article notes public blowback and that some bank sponsors may not want association with the Mansion visit. While no specific financial impact was reported, such episodes can create reputational risk and may be something investors monitor when assessing management and partner relationships.
What remuneration reporting errors occurred at Toll Holdings?
Toll Holdings had to amend its full-year remuneration table after finding errors in the allocation between cash salary and non-monetary pay for several executives. The company corrected the disclosures; for example, former managing director Paul Little’s reported cash salary figures were adjusted but his total remuneration remained unchanged at $6.4 million.
Why do pay disclosure errors at companies like Toll matter to everyday investors?
Accurate executive pay disclosure is a governance and transparency issue. Errors can raise questions about internal controls and investor reporting. The Toll corrections highlight why shareholders and prospective investors pay attention to clear, accurate remuneration statements.
What other leadership or governance changes in the article should investors note?
The article reports David Gonski has been appointed to advise the NSW government in the search for new leadership for Sydney’s rail system (two CEO roles). It also notes Westpac’s Brian Hartzer appointed Melanie Evans—formerly of BT—as his chief of staff after a BT reshuffle. These moves relate to governance and succession planning at prominent institutions, items investors often watch.