Today we have a guest post by Scott Long from Melbourne. Scott has been a long time contributor to Domainer and auDA.
Is auDA Practising What It Preaches? – Scott Long; Author
In auDA’s 2020 Annual Report, they affirmed that ASX (Australian Stock Exchange) principles are important to them as an organisation.
The Corporate Governance Principles and Recommendations issued by the ASX (the CGPR) set out a contemporary view of appropriate corporate governance standards that are relevant not only to the ASX listed public entities that are required to report against them, but to all corporations interested in good governance practices.
Today, I look at just one of these ASX Governance principles (otherwise this article would be SO long).
In my opinion, auDA are failing their Members when it comes to remuneration transparency and accountability.
e.g – Principle 8 of the ASX Corporate Governance Council Principles and Recommendations (the Principles) require that companies comply or explain their “Remuneration Fairly and Responsibly”.
Recommendation 8.2
“A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives“.
So What Does auDA Do?
It gives bonuses to Senior Executives, and covers these off with a simple two-line sentence in the October Board Minutes (Item 8):
The Board resolved, on the recommendation of the People & Culture Committee, to accept the CEO’s proposal for Senior Executive Bonus Payments.
- Good one auDA! How much? Who to? Why?
- What KPI’s were achieved to get bonus payments?
- Surely growth in executive remuneration can only be justified by a corresponding growth in the performance of the company?
- Given that auDA is primarily a membership organisation – and also responsible to many stakeholders – surely this information should be public?
Unlike ASX listed entities, auDA has an Associate membership structure which does not allow its members to vote on executive and auditor’s remuneration – or to hold the Board accountable on any relevant matter. That is absurd.
In light of this absurdity, auDA flaunts the ASX principles like it’s the new vanguard of NFP corporate governance, but stops short in disclosing important matters. E.g; applying ASX principles and the Corporations Act, Section 250R(2) which requires a resolution at the AGM that the remuneration report must be put to the vote.
Then there is the “Pub Test”
As Australian Chamber of Commerce and Industry head James Pearson recently said:
At a time when many Australians are out of a job and many people in business are hanging on hoping for restrictions to ease and customers to come back, pay rises for public sector executives don’t pass the pub test.
In Comparison
Nominet is the UK regulator of domain names, and as you can see, it is very transparent and accountable when it comes to declaring income. The big question is why can’t auDA be the same?
In Closing
In terms of accountability and transparency, it’s important to remember that the majority of auDA’s revenue comes from its stakeholders – particularly registrants of Australian domain names.
Surely we have a right to know how you spend our money?
Kinderis says auDA now has 60 employees. How many of these are Senior Execs or managers that are entitled to bonuses?
At minimum, auDA should be up front about who and how much is paid to Senior Executives which includes Bonuses paid to the CEO.
Good luck with that! They have just keep going with what those before them started doing at the expense of .au domain name registrant paying Consumers!
“auDA directors vote to give themselves pay rises”
https://www.itwire.com/strategy/82986-auda-directors-vote-to-give-themselves-pay-rises.html
“auDA to vote on another big hike in directors’ fees in Nov”
https://www.itwire.com/strategy/auda-to-vote-on-another-big-hike-in-directors-fees-in-nov.html
The obvious expensive lies, cover ups, secret bonuses continue under auDA 3.0.
What really has changed to benefit paying Registrants?
Did .au domain name wholesale pricing go down and any Consumers see a lower price? No in fact Crazy Domains and GoDaddy etc all put up their pricing once the 1 year registrations came in.
A new expensive auDA logo, new useless expensive auDA website with most old links and public materials not working at all now, new non domain name experienced auDA Board and new auDA CEO hasn’t improved anything.
https://domainer.com.au/its-been-two-years-since-afilias-took-over-running-the-au-registry-from-ausregistry/
How much is the Not For Profit & Charity ( auDA Foundation) Mismanagement paid and why would any Bonuses be paid at the claimed NFP / Charity for the chaos they themselves created?
“Secret / Blacked out” Bonuses from the Not For Profit funds?
https://www.auda.org.au/assets/Uploads/auDA-Board-Meeting-Minutes-19-August-2019.pdf
https://www.auda.org.au/assets/Board/2018/auDA-Board-Meeting-18062018-Minutes.pdf
https://www.itwire.com/strategy/82986-auda-directors-vote-to-give-themselves-pay-rises.html
https://www.itwire.com/strategy/auda-to-vote-on-another-big-hike-in-directors-fees-in-nov.html
$500,000 payout for an ex CEO whose 3 year contract was expiring anyway and was not renewed?
The disgrace continues.
How is the auDA Foundation going? Where is those $millions and what grants have been paid out in the last 4 years?
auDA’s Foundation reports and financials don’t make any sense at all and need to be investigated. They say it is a “separate entity” so DoCA can’t look into it or tell them what to do with the Foundation but they in fact “control” it at auDA board meetings records show or why are they talking about it, making decisions about it and including it in auDA Annual reports etc.
.au domain name registrant Consumers funded the auDA Foundation from .au domain name Registration and renewal fees!
https://www.acnc.gov.au/charity/0b130f647df5b431982faad4191024e7
It seems something is very wrong with the auDA Foundation over the last 4 years and again auDA is not Transparent or Accountable with it.
The auDA Board Meeting Minutes PDF files you reference in your article look to have been removed
Wonder who got the biggest bonuses?
Bruce Tonkin or Caroline Fritsch?
Anyone get a flash watch as well?
Hahahaha….Good questions Alex.
I wonder whether or not the Government Representative at auDA weighed in on this matter, given the Government view about Senior executive bonuses.
The Hon Ben Morton MP is the Assistant Minister to the Prime Minister and Cabinet
Mr Morton said.; “It is the expectation of the Government that where agencies have access to bonus arrangements they should exercise restraint to the furthest extent possible in keeping with community expectations,”
Assistant Minister Morton confirmed that the review is in addition to the ongoing freeze on senior executive remuneration, which is in place in recognition of the current economic circumstances caused by the COVID-19 pandemic.
https://ministers.pmc.gov.au/morton/2020/new-wages-policy-commonwealth-public-servants-and-review-performance-bonus-arrangements-senior-executives
auDA’s new expensive website doesnt show the old working auDA website links and materials anymore!!
How much did auDA pay for the new website and why didnt trhewy go to a tender?
Whoever did it stuffed up big time.
https://www.auda.org.au/assets/Uploads/auDA-Board-Meeting-Minutes-19-August-2019.pdf
Page not found
Is this a new way to delete the past and hide materials like what auDA did before ?
https://www.righttoknow.org.au/request/au_domain_administration_ltd_boa
New expensive auDA Logo – done
New expensive not working properly auDA Website – done
Delete public access to all old auDA website links and materials – done
Good article Scott.
Good point Sean, I am having difficulty finding many of the “current” rules and guidelines on the auDA website.
For example; TPP Wholesale just asked one of my clients to “submit a complaint” to auDA at this location; https://www.auda.org.au/au-domain-names/lodge-complaint/submit-domain-complaint.
What happens when you go there?
“Unfortunately, he information you’re looking for isn’t here.”
They can’t even get the word “the” right on the error page…
Screenshot;
Bonuses:
We pay their salary, we expect to know just how much they’re getting paid to run this show.
Website:
auDA boasts registration growth during 2020 and yet, Registry reports for 2020 are not available?
https://www.auda.org.au/industry/au-registry/registry-reports
Stakeholder engagement:
A measly 7% of the total 3,500+ Associate members elected Jackie Korhonen to the Board – says it all.
David Goldstein made a good observation in his blog.
The new auDA and the new board is worse than before the government review. There is less transparency and less multi-stakeholder engagement than before the government review. Supposedly the government was to review auDA every 2 years. Where are you?
https://www.communications.gov.au/departmental-news/au-domain-review-released
“The review’s key finding is that the current management framework is no longer fit-for-purpose.”
Where are the responsible government bureaucrats?
On holidays: Annaliese Williams https://www.linkedin.com/in/annaliesewilliams/
On holidays: Vicki Middleton https://www.linkedin.com/in/vicki-middleton-650013161/
Gone: Richard Bullock