The ghost: American Chris Tyler landed the job as CEO of Solution 6, a position that made him a contender for Australia’s Rich 200 list in BRW’s 2000 edition. In researching his wealth, the magazine’s sweep of international newspapers revealed that Tyler had a drug conviction for possession of 22.7 kilograms of marijuana. He had received a 10-year suspended sentence.
The response: Resignation
After initially trying to hose down the issue, Tyler resigned and left the country. Asked why he had omitted to mention the issue to the boards of Solution 6 or Telstra, Tyler said he was “never asked”.
The ghost: A citizen of Australia and Romania (his birthplace), Frank Timis has made his billions investing in resources projects in emerging countries such as Sierra Leone, Liberia and Kazakhstan, according to BRW magazine. In the 1980s, Timis was twice convicted of heroin possession.
The response: Making amends
Since becoming rich, Timis has donated about £400,000 (more than $600,000) to help fund research into methadone as a treatment for heroin addicts.
The ghost: A driven and successful executive in the wealth management industry more than 32 years, Andy Penn had been with AXA for some years when the regulator, the Australian Prudential Regulation Authority, sought to have him disqualified as a trustee director. The APRA case was against several trustee directors and at issue was changes AXA “made to benefits in 2002 and 2003 without the fund’s members being consulted”, Sydney Morning Herald reported last year.
The response: Step aside and wait it out
Penn, who was then chief executive of the Australasian division, stepped aside and AXA gave him another role while it fought his case through the courts. It was a year before AXA won the case, and APRA was admonished for proposing the ban.
Penn was reinstated to his role in August 2006, and promoted to CEO in October the same year. In 2011, Penn received a $17 million severance package when AXA Asia Pacific and AMP merged.
Kath Walters is the editor of LeadingCompany and an award-winning journalist of 15 years’ experience. Kath was previously a senior writer and editor at BRW magazine covering management, strategy, finance, entrepreneurship and venture capital across all industry sectors. In 2006, Kath won the Citibank Award for Excellence in Journalism (General Business). Follow her on Twitter.
This article first appeared on LeadingCompany. Download your free LeadingCompany eBook “10 Key Considerations for Succession and Business Exits”.
