Why not contribute to our new “both sides of the fence” related party transaction list that we’re building to track service providers who become power players inside big companies. And we don’t mind if your entries go back as far as the 1980s.
This new Crikey list aims to track the associations and point out when service providers to companies become part of the company themselves, usually by joining the clubby board.
Send any corrections or additions to smayne @crikey.com.au. We prefer it at board level but appointments to senior management will also qualify and we don’t mind examples that date as far back as 1980s.
AMP: Paul Mazoudier joined as a non-executive director in April 2000 after the board coup that saw five directors including chairman Ian Burgess quit. Paul was a former chairman and partner of the Sydney office of legal firm Minter Ellison which received many millions from AMP over the years. Richard Grellman joined at the same time having just retired as a partner with KPMG which did plenty of work on the AMP demutualisation a couple of years earlier.
Austar: non-executive director Justin Gardiner is a former partner at Arthur Anderson which has all the audit work.
Boral: director Elizabeth Alexander is a partner with Pricewaterhousecoopers which got paid $5 million to do the independent expert’s report for last year’s demerger.
Brambles: Long-serving non-executive director Mark Burrows was also the long-standing investment banker for this industrial giant up until a few years ago.
Bristile: Bruno Camarri is a non-executive director and long time Perth-based partner of Freehill Hollingdale & Page which just happen to be Bristile’s lawyers.
Burns Philp: Long serving director Mark Burrows made many millions working on the investment banking side for the spices and ingredients group which had a near-death experience a couple of years back.
Coles Myer: Solomon Lew is a former chairman and current director of Coles Myer who doubles up as a major supplier whilst his best mate Lindsay Fox was a director who provided about $100 million a year in transport services to the retailing giant.
Commonwealth Bank: In 1997, John Lindsay Arthur (Partner at Freehills, Sydney) managed the outsourcing deal for the CBA to EDS (Aust) and was appointed to the board of EDSA thanks to his close relationship with ComBank CEO David Murray and senior executive John Mulcahy (ex-Lend Lease). John Arthur’s firm Freehills also got a stack of work out of Lend Lease but this may not be related to John Mulcahy in any way.
Cumnock Coal: Former Mallesons Stephen Jaques partner Stan Howard was until recently the chairman. Mallesons are the company’s legal adviser and host the AGM at their offices.
ERG: David Humann is a director and audit committee member and still consults to PriceWaterhouseCoopers after being a long-time partner in the PWC Hong Kong office. PWC also happen to be ERG’s auditor.
Foodland: Chairman Don Humphrys spent 10 years as managing partner at Ernst & Young in WA and they still have the gig as Foodland auditor.
Harvey Norman: non-executive director Christopher Brown has been the company’s legal adviser with small firm Gillis Delaney Brown since 1982 and on the board since 1987.
HIH: chairman Geoffrey Cohen, non-executive director Justin Gardiner and finance director Dominic Fodera all came out of Arthur Anderson which were the company’s auditor.
Hills Motorway Group: Former Mallesons Stephen Jaques partner Stan Howard is the chairman and Mallesons are the company’s legal adviser.
Hutchison Telecommunications Australia: non-executive director Justin Gardiner is a former partner at Arthur Anderson which has all the audit work.
King Island Cheese Company: Arnold Bloch Leibler partner Stephen Skala is on the board and ABL are the company lawyers.
National Australia Bank: KPMG partner Chris Lewis headed the due diligence team that recommended the purchase of US mortgage processing business Homeside in 1997. He was also the auditor who signed the NAB accounts saying there were no problems with Homeside in 2000 and in July 2001 was recruited to head the bank’s global risk management operations.
Skilled Engineering: Non-executive director Robert Gartside is a partner at legal firm GWP Aarons & Co which picks up more than $300,000 a year in legal fees. Fellow non-executive director Bryan Kelly has a consulting firm called Flagstaff Consulting which collected more than $150,000 in consulting fees in 2000 on top of his director’s fees of $48,000.
Southern Cross Broadcasting: company founder and top 20 shareholder John Dahlsen is a former partner and ongoing consultant to Corrs Chambers Westgarth which does all the legal work for SCB.
Sunraysia Television: Nathan Kuperholz, former Holding Redlich partner and now self employed sole practitioner who provides legal services to Sunraysia Television and to the Presser family companies. He is also a non-executive director of Sunraysia.
Tabcorp: chairman Michael Robinson is a senior partner at legal firm Arthur Robinson Hedderwicks which has long worked for Tabcorp and even did lots of work for the government on the 1994 float.
Westfield Holdings: deputy chairman Fred Hilmer picked up millions from Westfield through his former consulting firm Port Jackson partners before he quit this to become CEO of Fairfax in 1998-99. The figure was $216,000 in 1996-97, $361,000 in 1997-98, reducing to $77,000 in 1998-99. Fellow non-executive director David Gonski also collected hundreds of thousands in consulting fees on top of his director’s fees.