Chief operating officer Jeff Hughes departed CPA Australia in late December 2017, after being with the association since 2003.
The separation payment will be disclosed in CPA Australia’s annual accounts, a spokesperson told Accountants Daily. It comprises an agreed 10-week payment in lieu of notice, a payment in accordance with the organisation’s standard redundancy policy, and all other statutory entitlements.
Accountants Daily understands the standard redundancy payout policy is three weeks for every year of service, calculated on base pay.
Mr Hughes’ base pay for year ending 31 December 2016 was $681,904. As announced mid-last year, his total remuneration package was $902,259 which is inclusive of a $182,031 incentive payment and superannuation. His payout will therefore be substantially less than former CEO Alex's Malley's, which was $4.9 million.
In October last year, CPA Australia changed the structure of its nomination and remuneration committee and process. Senior executive positions at general manager level and above will be approved by the board. Previously, the CEO set the remuneration levels for the COO positions.
With the exception of interim chief executive and former company secretary Adam Awty, all top level management and directors who ran the association during Mr Malley's era have departed.
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day