- Date published:
9:18 am, June 23rd, 2019 - 75 comments
Categories: capitalism, class war, Economy, equality, Financial markets, john key, Living Wage, wages, workers' rights - Tags: anz, bankers, banksters
This week’s news about ANZ is beginning to resemble a Game of Thrones episode. But with more blood.
The guy who used to be ANZ’s chief executive and the purchaser of John Key’s batch suddenly found the world around him changing dramatically. One day he was chief executive on a salary of over $3 million and also with benefits like the supply of limousines and the safe storage of his wine collection and the next day he was outski.
And he had suddenly lost $6.4 million worth of share options.
But wait there’s more.
Late Friday there was this hit piece from Stuff:
The wife of former ANZ New Zealand boss David Hisco bought the couple’s Auckland family home from her husband’s employer for substantially less than its capital valuation in 2017.
Deborah Walsh paid $6.9 million in July of that year for the lavish St Heliers property, less than the $7.55m ANZ paid when it bought the house in early 2011.
The luxurious 700 square metre ocean-view home, reached by a private driveway that runs off the main St Heliers Bay road, includes a heated swimming pool, tennis court and six bedrooms.
Valuations service QV put the property’s 2017 capital value (including an estimated $7.2m land value for the 2454 sqm parcel) at $10.75m.
The revelation is likely to raise more questions about Hisco’s employment package with ANZ as disclosed by chairman Sir John Key.
Maybe the cheap price was part of the salary package? But it appears not:
On Friday evening ANZ’s spokesman said the bank bought the house when Hisco arrived in New Zealand.
“The housing allowance that David received as part of his expat arrangements — which was disclosed annually — was offset by the market rent David was required to pay ANZ for the house.”
The house was eventually sold by the bank to his wife based on market valuations done at the time, he said.
So there was no sweetheart deal or a long term agreement for sale and purchase. Whoever was ANZ’s valuer should check their professional indemnity insurance.
And fuck it but this affects ordinary kiwis. Again from Stuff:
Sam Stubbs is breaking the silence of the KiwiSaver schemes over the ANZ expenses furore.
Stubbs, who has repeatedly called for a New Zealand Royal Commission on banking, has sent a “please explain” letter to ANZ chairman Sir John Key asking for details of the expenses claims of ANZ’s former chief executive David Hisco.
In Europe and the United States, activist investors, including pension funds, would have been seeking more information, Stubbs said.
But in New Zealand the pension fund market was dominated by KiwiSaver, and KiwiSaver was dominated by the big banks.
It will be interesting to see what response Stubbs gets from Key.
Stubbs’ letter to Sir John began: “We have become aware of the expenses incurred recently by the recently departed CEO, David Hisco, reported as an average of over $418,000 per annum, for the last eight years.”
It went on to request “as a shareholder” that Simplicity be provided with the following:
1) Detail of the expenses policy that allowed this spending to occur, and detail on how often this was reviewed by the Board.
2) Any documented policies and procedures describing the internal controls in place to ensure spending was within policy guidelines.
3) A line by line description of, and the amount of, each of Mr Hisco’s expenses paid for by the company, for every year Mr Hisco was CEO of ANZ New Zealand.
4) Any further explanations as to why you consider Mr Hisco’s expenses reasonable in the context of his role and responsibilities.
“We request answers to the above questions as a matter of urgency, and under no circumstances later than the 5th of July, 2019,” the letter concludes.
Key had the Wall Street nickname the smiling assassin. Just think of his time as leader of National and wonder what happened to Richard Worth, Pansy Wong, Phil Heatley, Colin King, John Hayes, Mike Sabin, Claudette Haiti amongst others. They all disappeared without a trace after getting into various sorts of trouble.
So this latest bit of bad news for Hisco may be the result of really good journalism or the result of a strategic leak.
We may never know.
I almost feel sorry for Hisco. I am sure he never saw it coming.