Dodd Takes A Swipe At Board And Returns To Negotiations
Sydney Morning Herald
Thursday April 12, 2001
The credibility of NRMA Insurance Group's rejigged board was pummelled again yesterday when sacked chief executive Mr Eric Dodd rejected the board's assertion that his performance was a reason for his dismissal.
Mr Dodd made a short statement yesterday, holding his tongue while he and his lawyers negotiate his termination.
He said: ``I totally refute new claims that my termination was in part based on performance issues and I am more than happy to be judged on my record as CEO over the past three years."
Mr Dodd is understood to have been offered only one year's pay, or $1.5 million to $2 million, given his contract had only one year to run.
But he will contest this, given it pales in comparison to the parting payments to other departed insurance executives such as Mr George Trumbull ($13 million from AMP plus $10 million worth of performance rights), Mr Ray Williams ($5 million from HIH though he is yet to get it) and Mr Nick Steffey (total benefits from GIO of $8.6 million).
The chairman of the Australian Shareholders Association, Mr Ted Rofe, said yesterday there should be further changes to the composition of the NRMA board in the wake of the controversy over the past two weeks.
``There seemed to be some anticipation that several of the other directors would resign from the board, particularly in the context of those negotiations about the retirement benefits [for directors] that have been approved by the board," Mr Rofe said.
Still, the board has given no indication that there will be more changes, despite the ASA's argument that more should go and a truly independent chairman appointed after interim chairman Mr Rowan Ross.
Mr Dodd's scalp appears to have been a condition of Mr Whitlam's earlier resignation.
While the pair had clashed before, Mr Dodd and Mr Whitlam's relations are understood to have soured after last October's board meeting. According to one account, Mr Whitlam believed Mr Dodd had ``dudded him" by not supporting an issue of options to the chairman as part of the set of resolutions to go to shareholders at NIGL's first annual general meeting.
Mr Dodd came under more pressure with Mr Whitlam's decision to launch an inquiry, to be conducted by legal counsel, into the leak of information which embarrassed Mr Whitlam. Some say the inquiry was designed to finger Mr Dodd but in fact cleared him and only named director Ms Anne Keating and consultant Mr Rob Dempsey.
Meanwhile, former SGIO chief executive Mr Ian Brown is not seen as a permanent replacement for Mr Dodd.
Mr Dodd's preferred successor is understood to be the chief financial officer, Mr George Venardos, but the circumstances of his former boss's exit and his own soured relationship with the former chairman may rule him out for now.
© 2001 Sydney Morning Herald