Special Rich List edition and Babcock preview
February 2, 2010
Dear Mayne Reporters,
BRW have just released the first details of their 2008 Rich List on their website. Andrew "Twiggy" Forrest is the new number one at $9.41 billion, although this is already out of date given that his 102.3 million Fortescue Metals Group shares were worth $10.5 billion based on tonight's closing price of $10.27.
However, the big shock for me was that claim that Alan Bond is back on the Rich List with a $265 million fortune. Surely the man still responsible for the biggest ever Australian bankruptcy should give a bit of his new found dodgy African mining fortune back to his long-suffering creditors? You can read more about Bondy on Fairfax's Businessday site, which has the drop on the Rich List.
If you're worried about corporate governance in 2008, read Paul Barry's books about Alan Bond. The bloke was a complete crook and the idea that he's making millions dealing with African dictators is just abhorrent.
The strangest ranking by BRW was Gina Reinhart at just $4.3 billion. Given that iron-ore prices are soaring, Hope Downs has gone into production and Rio Tinto is bringing forward plans on the remaining 50-50 Hope Downs projects, how can Gina only stack on $300 million when Andrew Forrest is in the same Pilbara iron-ore business and we've all seen the Fortescue share price go into the stratosphere?
Meanwhile, the Mayne Report Rich List continues to power ahead with more than 1020 names. The full edition has the newest 35 that we've unearthed, most of whom have little public profile at all.
Australians love the perve factor of a Rich List and we can see it in the traffic figures because our Rich List has had 9,078 visits and 10,299 page views so far this year, whereas the next most popular article on our website is The Documents Behind Rupert's Pay-TV Conspiracy with 2,483 visits and 3,932 page views.
Click through for the full edition, including a preview of what should be a fascinating Babcock & Brown AGM in Sydney on Friday.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.
BRW have just released the first details of their 2008 Rich List on their website. Andrew "Twiggy" Forrest is the new number one at $9.41 billion, although this is already out of date given that his 102.3 million Fortescue Metals Group shares were worth $10.5 billion based on tonight's closing price of $10.27.
However, the big shock for me was that claim that Alan Bond is back on the Rich List with a $265 million fortune. Surely the man still responsible for the biggest ever Australian bankruptcy should give a bit of his new found dodgy African mining fortune back to his long-suffering creditors? You can read more about Bondy on Fairfax's Businessday site, which has the drop on the Rich List.
If you're worried about corporate governance in 2008, read Paul Barry's books about Alan Bond. The bloke was a complete crook and the idea that he's making millions dealing with African dictators is just abhorrent.
The strangest ranking by BRW was Gina Reinhart at just $4.3 billion. Given that iron-ore prices are soaring, Hope Downs has gone into production and Rio Tinto is bringing forward plans on the remaining 50-50 Hope Downs projects, how can Gina only stack on $300 million when Andrew Forrest is in the same Pilbara iron-ore business and we've all seen the Fortescue share price go into the stratosphere?
Meanwhile, the Mayne Report Rich List continues to power ahead with more than 1020 names. The full edition has the newest 35 that we've unearthed, most of whom have little public profile at all.
Australians love the perve factor of a Rich List and we can see it in the traffic figures because our Rich List has had 9,078 visits and 10,299 page views so far this year, whereas the next most popular article on our website is The Documents Behind Rupert's Pay-TV Conspiracy with 2,483 visits and 3,932 page views.
Click through for the full edition, including a preview of what should be a fascinating Babcock & Brown AGM in Sydney on Friday.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.
Limbering up for Babcock on Friday
I'm off to Sydney at sparrows tomorrow for the Everest Babcock & Brown and Austar AGMs, neither of which will be webcast, which is pretty disappointing for a broadcasting company like Austar.
However, the main reason for the trip is the Babcock & Brown AGM on Friday. This will be an absolute corker, especially given the revelations by Fairfax's Michael West that Babcock & Brown Infrastructure has lent $200 million unsecured to a subsidiary of Babcock & Brown at just 8%. Surely the independent directors of BBI, including luminaries such as former AMP Investments boss Leigh Hall, can't tolerate this sort of behaviour.
Macquarie Group was quite happy to let Macquarie Fortress fall over during the credit crunch, yet it seems Babcock is far more supportive of its satellites. They just mopped up my shares in Babcock & Brown Environment at 50c a pop after the Darwin bio-fuels plans proved to be a disaster and now there is talk of bailing out Babcock & Brown Power which is sinking after taking on too much debt with the Alinta takeover last year.
All of this will be explored on Friday, along with other issues such as the Tricom bailout, excessive salaries, margin loans on executive shares, the lack of independent directors and the like.
Have a listen to these edited highlights from the 2007 Babcock AGM.
However, the main reason for the trip is the Babcock & Brown AGM on Friday. This will be an absolute corker, especially given the revelations by Fairfax's Michael West that Babcock & Brown Infrastructure has lent $200 million unsecured to a subsidiary of Babcock & Brown at just 8%. Surely the independent directors of BBI, including luminaries such as former AMP Investments boss Leigh Hall, can't tolerate this sort of behaviour.
Macquarie Group was quite happy to let Macquarie Fortress fall over during the credit crunch, yet it seems Babcock is far more supportive of its satellites. They just mopped up my shares in Babcock & Brown Environment at 50c a pop after the Darwin bio-fuels plans proved to be a disaster and now there is talk of bailing out Babcock & Brown Power which is sinking after taking on too much debt with the Alinta takeover last year.
All of this will be explored on Friday, along with other issues such as the Tricom bailout, excessive salaries, margin loans on executive shares, the lack of independent directors and the like.
Have a listen to these edited highlights from the 2007 Babcock AGM.
What happens to ousted CEOs?
Australia's directors club is dominated by former CEOs as this list demonstrates but gaining entry always depends on the circumstances of your exit. In light of Michael Hawker's resignation from IAG during the week, here is a list that tracks what happens to CEOs who were forced out in awkward circumstances.
Peter Bartels: left Foster's with a huge payout in 2002 and then landed the top job at Coles Myer until he was axed in 1996 and never emerged again on a major public company board, although he worked on Peter Costello's campaign committee and retained a gig on the Australian Sports Commission.
Will Bailey: forced out as ANZ CEO in 1992 after taking an expensive cruise down the Nile with the likes of Lindsay Fox and Peter Bartels and only managed to hang onto his Coles Myer board seat courtesy of Solly Lew's support until he departed amid the Yannon scandals.
Frank Cicutto: resigned as NAB CEO in 2003 after the foreign currency fiasco and apart from chairing the shemozzle known as Run Corp, hasn't landed any decent gigs.
Frank Conroy: forced out by Kerry Packer as CEO of an imploding Westpac in 1992, he recovered nicely to sit on several boards such as Santos, plus rose to chair St George during his halcyon days, which included poaching Gail Kelly from CBA.
Tony D'Aloisio: ousted as ASX CEO with an $8 million payout after SFE Corp shareholders insisted that Robert Elstone run the whole show after the 2006 merger. Was chairman of ASIC just a few months later.
Duncan Fischer: ousted as Tattersall's CEO after Unitab shareholders insisted that Dick McIlwain run the combined business after the 2006 merger. Yet to emerge anywhere else.
John Fletcher: quit as Brambles CEO after falling out with new chairman Don Argus, then was recruited off the golf course to run Coles Myer very badly for six years and is unlikely to re-emerge, especially given the $50 million me made at the retailing giant.
Michael Hawker: axed as CEO of IAG after four years so we'll see if he can land any prominent board seats anywhere.
David Higgins: Lend Lease initially prospered and then later ran off the rails during his seven year stint as CEO, but he stayed in London and in 2003 became CEO of English Partnership, the government's regeneration agency, after which he landed the top job at the Olympic Delivery Authority.
Keith Lambert: sacked as Southcorp CEO in 2004 and yet to re-emerge anywhere.
John Prescott: ousted from BHP after seven years as CEO in 1998 and since then has only landed the chairmanship at Queensland Rail, which he can handle from his Noosa retreat, along with a seat at Newmont Mining and the chair of the Federal Government's struggling submarine company ASC.
Gary Rice: sacked as Seven CEO by Kerry Stokes in 1998 and hasn't re-emerged anywhere after a career which included running all three commercial networks at different times.
Matthew Slatter: institutions led by John Sevior at Perpetual campaigned hard to get the Tabcorp CEO sacked and they succeeded in 2007, burying the Kiwi who is yet to emerge on any public company boards.
Will Bailey: forced out as ANZ CEO in 1992 after taking an expensive cruise down the Nile with the likes of Lindsay Fox and Peter Bartels and only managed to hang onto his Coles Myer board seat courtesy of Solly Lew's support until he departed amid the Yannon scandals.
Frank Cicutto: resigned as NAB CEO in 2003 after the foreign currency fiasco and apart from chairing the shemozzle known as Run Corp, hasn't landed any decent gigs.
Frank Conroy: forced out by Kerry Packer as CEO of an imploding Westpac in 1992, he recovered nicely to sit on several boards such as Santos, plus rose to chair St George during his halcyon days, which included poaching Gail Kelly from CBA.
Tony D'Aloisio: ousted as ASX CEO with an $8 million payout after SFE Corp shareholders insisted that Robert Elstone run the whole show after the 2006 merger. Was chairman of ASIC just a few months later.
Duncan Fischer: ousted as Tattersall's CEO after Unitab shareholders insisted that Dick McIlwain run the combined business after the 2006 merger. Yet to emerge anywhere else.
John Fletcher: quit as Brambles CEO after falling out with new chairman Don Argus, then was recruited off the golf course to run Coles Myer very badly for six years and is unlikely to re-emerge, especially given the $50 million me made at the retailing giant.
Michael Hawker: axed as CEO of IAG after four years so we'll see if he can land any prominent board seats anywhere.
David Higgins: Lend Lease initially prospered and then later ran off the rails during his seven year stint as CEO, but he stayed in London and in 2003 became CEO of English Partnership, the government's regeneration agency, after which he landed the top job at the Olympic Delivery Authority.
Keith Lambert: sacked as Southcorp CEO in 2004 and yet to re-emerge anywhere.
John Prescott: ousted from BHP after seven years as CEO in 1998 and since then has only landed the chairmanship at Queensland Rail, which he can handle from his Noosa retreat, along with a seat at Newmont Mining and the chair of the Federal Government's struggling submarine company ASC.
Gary Rice: sacked as Seven CEO by Kerry Stokes in 1998 and hasn't re-emerged anywhere after a career which included running all three commercial networks at different times.
Matthew Slatter: institutions led by John Sevior at Perpetual campaigned hard to get the Tabcorp CEO sacked and they succeeded in 2007, burying the Kiwi who is yet to emerge on any public company boards.
35 new Rich List entries
The following new additions to The Mayne Report Rich List complete our goal of reaching a whopping 1000 names of Australians worth more than $10 million.
Andrew Abercrombie: the founder and former chief executive of leasing company FlexiGroup, which listed late last year. Even in a down turned market, his wealth still hovers around $100 million.
Martyn Booth: the operations boss of Macquarie Airports owns about $10 million worth of shares in the company, on top of his huge salary from Macquarie Group.
Bowness Family: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
Craig Burton: an executive director of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 6 million shares worth about $40 million.
Robin Campbell: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
Lucy Christian: pops up on the Futuris top 20 shareholder list with 7.2 million shares worth more than $12 million.
Reg Clairs: the former Woolworths CEO was replaced by Roger Corbett in 1998, but if he retained his shareholding he'll be a very wealthy man based on the 8-fold increase in the share price.
Peter Clemenger: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
Bill Clough: non-executive chairman of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 8 million shares worth almost $60 million.
Alan Cowen: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
David Curran: one of the key decision makers for the CBA in their IT area is also a former partner of, and large shareholder in, Accenture with a share wealth north of $5 million.
Jane Hemstritch: one of the newest members of the CBA Board. Previously was the Managing Director of Accenture Asia Pacific and was still in that position at the time of her appointment to the CBA board. Her share wealth is north of $20 million with a large holding of shares in Accenture.
Gil Hoskins: the former managing director of National Mutual made his real fortune in property development and playing the dotcom boom, especially in companies like Sausage Software.
John Kaldor: this Sydneysider recently donated an art collection worth more than $35 million to the Art Gallery of NSW and the National Gallery of Australia.
Gordon Martin: chairman of Coogee Chemicals, and chancellor of Curtin university, his wealth has grown northwards of $400 million.
Kerrie Mather: the salary of the Macquarie Airports CEO is not disclosed because she is on secondment from Macquarie Group, but after five years of spectacular performance she must be worth more than $10 million based on the Millionaire Factroy bonus system.
Barry Mitchell: part of the Mitchell Brown Group that previously owned Westnet which was sold to iiNet and for them $81 million in cash.
David Moore: the managing director of emerging nickel miner Mincor owns 4 million shares which are worth more than $10 million.
Simon Mordant: along with his mate David Coe, this financier last year pledged $5 million to the Museum of Contemporary Art keeping within a recent trend of multi-million dollar philanthropic donations.
Les Owen: under his leadership AXA successfully undertook a major transformation program which resulted in significant improvements in performance and shareholder value.
Clive Palmer: a once successful Queensland property developer, this magnetite miner has substantially increased his wealth toward $500 million, riding the mining and resources boom.
John Parker: a former director of booming coal miner Felix Resources who resigned with 880,000 shares in 2006 that would today be worth almost $20 million if retained.
Nir Pizmony: sold JNH, Australia's largest privately owned toy distributor to Funtastic in 2002 for a reported $30 million. He left the Funtatsic board in 2004 with close to $25 million.
Nick Poll: managing director of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 2 million shares worth about $15 million.
John Rawlins: a professional mine manager and geologist who resigned from the board of the booming Felix Resources in 2007 but still made plenty from his stake in Resources Management and Mining, a major Felix shareholder until March 2007. He'd be a lot richer if they'd stayed on the Felix share register as the coal miner's share price has increased 500% since then.
Stephen Ross de Belle: an Australian investment banker with the likes of ABN Amro and Barclays who went on to become managing director of Midwest Corp which is in the middle of a takeover battle between Sinosteel and Murchison Metals which will see his 3.37 million shares turn into about $25 million.
Ian Runge: founder of Brisbane-based mining software and consulting company Runge which floated in 2008, raising $50 million but leaving the family still in control and worth almost $100 million.
Duncan Saville: wealthy fund manager who has punted badly backing struggling transport ticketing company ERG but is now stalking Allco Finance Group's embattled Rubicon trusts.
Nick Burton Taylor: former chair of one of Australia's oldest enterprises the Australian Agricultural company, his family still owns around 3% of the company even though he was recently ousted as chairman by major shareholder Futuris.
Jesse Taylor: the Perth-based chairman of Midwest Corp will collect almost $20 million from the Chinese Government or Murchison Metals for his 3.1 million shares when the takeover battle for the iron-ore wannabe goes through.
Chris Walker: pops up on the top 20 of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 800,000 shares worth about $6 million.
Matthew Walker: pops up on the top 20 of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 1 million shares worth about $7 million.
Helen Watkins: pops up on the Futuris top 20 shareholder list with 8.4 million shares worth almost $15 million.
Daniel Windrim: pops up on the top 20 of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 2 million shares worth about $15 million.
Les Wozniczka: the hot-headed Futuris CEO is paid more than $3 million a year and own 4.5 million shares worth more than $6 million.
Martyn Booth: the operations boss of Macquarie Airports owns about $10 million worth of shares in the company, on top of his huge salary from Macquarie Group.
Bowness Family: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
Craig Burton: an executive director of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 6 million shares worth about $40 million.
Robin Campbell: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
Lucy Christian: pops up on the Futuris top 20 shareholder list with 7.2 million shares worth more than $12 million.
Reg Clairs: the former Woolworths CEO was replaced by Roger Corbett in 1998, but if he retained his shareholding he'll be a very wealthy man based on the 8-fold increase in the share price.
Peter Clemenger: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
Bill Clough: non-executive chairman of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 8 million shares worth almost $60 million.
Alan Cowen: recently donated up to $5 million to a campaign to raise $150 million for art acquisitions for the National Gallery of Victoria to help celebrate 150 years in 2011.
David Curran: one of the key decision makers for the CBA in their IT area is also a former partner of, and large shareholder in, Accenture with a share wealth north of $5 million.
Jane Hemstritch: one of the newest members of the CBA Board. Previously was the Managing Director of Accenture Asia Pacific and was still in that position at the time of her appointment to the CBA board. Her share wealth is north of $20 million with a large holding of shares in Accenture.
Gil Hoskins: the former managing director of National Mutual made his real fortune in property development and playing the dotcom boom, especially in companies like Sausage Software.
John Kaldor: this Sydneysider recently donated an art collection worth more than $35 million to the Art Gallery of NSW and the National Gallery of Australia.
Gordon Martin: chairman of Coogee Chemicals, and chancellor of Curtin university, his wealth has grown northwards of $400 million.
Kerrie Mather: the salary of the Macquarie Airports CEO is not disclosed because she is on secondment from Macquarie Group, but after five years of spectacular performance she must be worth more than $10 million based on the Millionaire Factroy bonus system.
Barry Mitchell: part of the Mitchell Brown Group that previously owned Westnet which was sold to iiNet and for them $81 million in cash.
David Moore: the managing director of emerging nickel miner Mincor owns 4 million shares which are worth more than $10 million.
Simon Mordant: along with his mate David Coe, this financier last year pledged $5 million to the Museum of Contemporary Art keeping within a recent trend of multi-million dollar philanthropic donations.
Les Owen: under his leadership AXA successfully undertook a major transformation program which resulted in significant improvements in performance and shareholder value.
Clive Palmer: a once successful Queensland property developer, this magnetite miner has substantially increased his wealth toward $500 million, riding the mining and resources boom.
John Parker: a former director of booming coal miner Felix Resources who resigned with 880,000 shares in 2006 that would today be worth almost $20 million if retained.
Nir Pizmony: sold JNH, Australia's largest privately owned toy distributor to Funtastic in 2002 for a reported $30 million. He left the Funtatsic board in 2004 with close to $25 million.
Nick Poll: managing director of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 2 million shares worth about $15 million.
John Rawlins: a professional mine manager and geologist who resigned from the board of the booming Felix Resources in 2007 but still made plenty from his stake in Resources Management and Mining, a major Felix shareholder until March 2007. He'd be a lot richer if they'd stayed on the Felix share register as the coal miner's share price has increased 500% since then.
Stephen Ross de Belle: an Australian investment banker with the likes of ABN Amro and Barclays who went on to become managing director of Midwest Corp which is in the middle of a takeover battle between Sinosteel and Murchison Metals which will see his 3.37 million shares turn into about $25 million.
Ian Runge: founder of Brisbane-based mining software and consulting company Runge which floated in 2008, raising $50 million but leaving the family still in control and worth almost $100 million.
Duncan Saville: wealthy fund manager who has punted badly backing struggling transport ticketing company ERG but is now stalking Allco Finance Group's embattled Rubicon trusts.
Nick Burton Taylor: former chair of one of Australia's oldest enterprises the Australian Agricultural company, his family still owns around 3% of the company even though he was recently ousted as chairman by major shareholder Futuris.
Jesse Taylor: the Perth-based chairman of Midwest Corp will collect almost $20 million from the Chinese Government or Murchison Metals for his 3.1 million shares when the takeover battle for the iron-ore wannabe goes through.
Chris Walker: pops up on the top 20 of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 800,000 shares worth about $6 million.
Matthew Walker: pops up on the top 20 of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 1 million shares worth about $7 million.
Helen Watkins: pops up on the Futuris top 20 shareholder list with 8.4 million shares worth almost $15 million.
Daniel Windrim: pops up on the top 20 of the emerging Mirabella Nickel which is developing the highly prospective Santa Rita nickel mine in Brazil that will come into production in 2009. Owns 2 million shares worth about $15 million.
Les Wozniczka: the hot-headed Futuris CEO is paid more than $3 million a year and own 4.5 million shares worth more than $6 million.