Market plunges and Don Argus delusions
February 2, 2010
Dear Mayne Reporters,
After travelling up from Melbourne in a 35% full Virgin Blue flight, greetings from Canberra airport ahead of the big black tie dinner in Parliament's Great Hall for Kevin Rudd's first effort presenting the PM's annual science awards.
And after the All Ords plunged by 7% amidst plummeting global activity, wholesale deleveraging and crumbling confidence, the PM could be excused for looking a little distracted in his penguin suit tonight.
Given Rudd's assault on fat cat bankers, it was most amusing to hear him quoting approvingly from comments made by Business Council of Australia President Greg Gailey during Question Time today. Gailey is actually one of the least deserving members of the Mayne Report Rich List in the country, having ridden the Zinifex bubble to the top before getting out with an outrageous $15 million farewell last year.
It is people like Greg Gailey who should be making special donations to pensioners, not putting our press releases praising the government for pursuing reckless spending sprees at a time when the Federal Government's balance sheet should be strengthened not weakened. Go here for the arguments on that particular point, but is anyone else worried that Australia only has $30 billion in foreign reserves?
The carnage can be seen all over the place in the market today with Rio Tinto getting smashed by 15% after yesterday's huge backflip on China. It's no longer longer for stronger, it seems. And check out this piece in Crikey today about the debt challenges for the likes of Rupert Murdoch and the Fairfax family
The big Don Argus whinge
It was most amusing to read Matthew Stevens in The Australian today quoting BHP Billiton chairman Don Argus moaning about tenure limits spoiling his succession plans at The Big Australian.
The Don wanted former Wesfarmers CEO as chairman Michael Chaney to succeed him as BHP chairman, but was denied by a fictional character he called “somebody somewhere” who apparently created a rule that links length of board service with independence.
Is Don Argus really arguing that the BHP board couldn't have handed the chairmanship to Chaney when he retired from Wesfarmers in 2005?
Chaney, like most other Australian directors, would have been duly elected for another 3 year term on the BHP board with more than 90% of the votes in favour.
Instead, Chaney resigned from the BHP board to rescue National Australia Bank from its foreign currency crisis. And who was the cheerleader behind this move? None other than former NAB CEO Don Argus who was horrified at the prospect of former Westpac finance director stepping up to the plate.
The most bizarre thing about the Stevens is story is that he failed to mention The Don's own excessive tenure at BHP and that he is facing a contested election at next week's London AGM on that very issue.
Argus has been a director of BHP since 1996 and chairman since 1998. He should retire now, not in two years time as promised, and the rest of the directors should immediately abandon this empire building bid for Rio Tinto.
That's all for now as the battery is about to go.
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.
After travelling up from Melbourne in a 35% full Virgin Blue flight, greetings from Canberra airport ahead of the big black tie dinner in Parliament's Great Hall for Kevin Rudd's first effort presenting the PM's annual science awards.
And after the All Ords plunged by 7% amidst plummeting global activity, wholesale deleveraging and crumbling confidence, the PM could be excused for looking a little distracted in his penguin suit tonight.
Given Rudd's assault on fat cat bankers, it was most amusing to hear him quoting approvingly from comments made by Business Council of Australia President Greg Gailey during Question Time today. Gailey is actually one of the least deserving members of the Mayne Report Rich List in the country, having ridden the Zinifex bubble to the top before getting out with an outrageous $15 million farewell last year.
It is people like Greg Gailey who should be making special donations to pensioners, not putting our press releases praising the government for pursuing reckless spending sprees at a time when the Federal Government's balance sheet should be strengthened not weakened. Go here for the arguments on that particular point, but is anyone else worried that Australia only has $30 billion in foreign reserves?
The carnage can be seen all over the place in the market today with Rio Tinto getting smashed by 15% after yesterday's huge backflip on China. It's no longer longer for stronger, it seems. And check out this piece in Crikey today about the debt challenges for the likes of Rupert Murdoch and the Fairfax family
The big Don Argus whinge
It was most amusing to read Matthew Stevens in The Australian today quoting BHP Billiton chairman Don Argus moaning about tenure limits spoiling his succession plans at The Big Australian.
The Don wanted former Wesfarmers CEO as chairman Michael Chaney to succeed him as BHP chairman, but was denied by a fictional character he called “somebody somewhere” who apparently created a rule that links length of board service with independence.
Is Don Argus really arguing that the BHP board couldn't have handed the chairmanship to Chaney when he retired from Wesfarmers in 2005?
Chaney, like most other Australian directors, would have been duly elected for another 3 year term on the BHP board with more than 90% of the votes in favour.
Instead, Chaney resigned from the BHP board to rescue National Australia Bank from its foreign currency crisis. And who was the cheerleader behind this move? None other than former NAB CEO Don Argus who was horrified at the prospect of former Westpac finance director stepping up to the plate.
The most bizarre thing about the Stevens is story is that he failed to mention The Don's own excessive tenure at BHP and that he is facing a contested election at next week's London AGM on that very issue.
Argus has been a director of BHP since 1996 and chairman since 1998. He should retire now, not in two years time as promised, and the rest of the directors should immediately abandon this empire building bid for Rio Tinto.
That's all for now as the battery is about to go.
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.