CEO sacking: secret meetings, missing docs and payout shock
The more is revealed about the sacking of the WCC chief, the more questions arise. Stock image.
Carol Altmann – The Terrier
For those who missed my post stream during the final meeting of the Warrnambool City Council, here is the string of revelations regarding the dumping of the CEO:
Good god – this is getting interesting! Cr Kylie Gaston has asked a number of punchy questions to the Mayor about the whole sacking of the CEO saga.
We are now learning:
1. Nine applications during the recruitment of the previous CEO went missing. The recruitment agency had an IT problem. (I hope we got a refund from that recruitment agency).
2. The council and CEO Schneider met on 21 February to discuss issues with the CEO’s performance.
3. Crs Cassidy and Herbert went to Peter Schneider’s private house on a Sunday morning on February 23 to discuss issues that Cr Cassidy had with the CEO. Cr Herbert set up this meeting. Cr Cassidy says she now considers it was unprofessional to have this meeting at Mr Schneider’s house.
4. Cr Gaston says councillors didn’t realise what they signed up for with the CEO’s contract that would allow such a big payout of around $364,000.
5. Another big allegation – that the former CEO signed up long-term contracts of several senior managers knowing that he was leaving. I wonder who these people were? (Ms King – the new acting CEO – was not among them.)
6. Cr Sycopoulis is raising whether the CEO payout is the end of the matter or if extra legal fees may be coming, if there is legal action by Peter Schneider.
7. Cr Gaston says a performance review of the former CEO in May was not favourable and that, in effect, his sacking was not “out of the blue”.
8. It sounds like the WCC didn’t know what it signed up for with the former CEO’s contract. (Good grief). The size of the payout came as a surprise. Not good enough councillors.
9. Bring on the election – there are no winners here.
Top lawyers withdrew bill for advice on CEO sacking
Carol Altmann – The Terrier
The story behind the axing of the Warrnambool City Council CEO is becoming murkier, with news that the very expensive lawyers involved didn’t charge a cent.
I can tell you the lawyers did in fact charge the council, but then they pulled the bill.
But let’s go back a step.
In one of the most staggering revelations of this whole messy affair, Cr Sue Cassidy told the Standard on Thursday that, “no legal fees were charged by our solicitors” for advice around the dumping of CEO Peter Schneider.
Cough! Splutter! Choke!
When, in the long history of the esteemed legal profession, have you ever heard of top-class lawyers from Melbourne working for free?
Why would any lawyer knock back a lazy $650 to $800 an hour to provide advice on how to sack a CEO?
We now know the four councillors involved sought legal advice and didn’t just Google “how to dump a CEO and still get re-elected”.
This was a very serious matter, given they were about to toss the CEO out the door and hand the cost to ratepayers . That cost, so far, is hundreds of thousands of dollars – around $400,000 in fact.
Yet Cr Cassidy tells us the lawyers never charged a cent for what must have been considerable, specialist advice.
Well of course they charged the council – they sent a bill – but there’s a twist.
They later tore it up.
“Council received a bill that was later withdrawn,” a council spokesman told me today via email.
What? Withdrawn?
Righto, we are in seriously weird territory.
Why would a law firm invoice the council for legal services, and then withdraw that bill?
I asked that question back to the council.
The council didn’t ask why, the spokesman replied.
Oh come on. Seriously?
A top law firm wipes off a bill for what must have been thousands of dollars worth of work and the council just shrugged?
Nothing makes sense and we are – still – not being told the full story by the council, or the four councillors involved: Crs Neoh, Cassidy, Gaston and Owen.
Instead the story drips out in little dark droplets of detail that we all have to try and piece together.
The former CEO has been gone almost two months and we still don’t have the full picture.
As was revealed here, the Local Government Inspectorate is now investigating to see if there were any breaches of the Local Government Act.
Regardless of why the CEO was dumped (“no reason” is the official reason), this whole thing has been handled appallingly on behalf of the people of Warrnambool who, from my reading, are justifiably angry and embarrassed.
Western Victoria Upper House MP Bev McArthur this week raised the whole mess in Parliament, and pulled no punches:
“My question is to the Minister for Local Government and concerns the recent turmoil at Warrnambool City Council and the choice facing voters at the forthcoming October elections.
As the minister knows, the chief municipal inspector has announced an investigation into the sacking of the council’s CEO.
This shoddy backstairs intrigue saw four councillors conspire to seek legal advice behind the backs of their colleagues without spending authorisation and spring the sacking on an otherwise well-regarded CEO whilst simultaneously appointing an existing director to the job.
I welcome this review and thank the minister for his assistance in securing it. On top of this, last December the Victorian Ombudsman began investigating potential credit card fraud at Warrnambool City Council.
The question I have for the minister is: can he ensure that all relevant information from both reports will be released prior to the upcoming local government elections?”
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Questions upon questions – and they will keep coming until we get all the answers.
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Councillors become king makers, but the secrecy remains
In charge: former WCC Community Development manager Vikki King was chosen by the leaders of last week’s coup to replace the sitting CEO Peter Schneider. Image: WCC
Carol Altmann – The Terrier
I asked a simple question of the Warrnambool City Council last Friday: could I have the CV of our new CEO?
The answer was no.
Secrecy is so ingrained in the Warrnambool City Council that ratepayers are not allowed to see the CV of the person who we will potentially* pay around $340,000 – or $26,000 a month for the next 12 months – to run our city.
*(Edit: I have added the word potentially, as this was around the mark for the former CEO, Peter Schneider. Another former CEO, Bruce Anson, received a package of $320,000 in his final year. These salaries are in line with what is offered in “Band 2” councils which include W’bool. The WCC has not disclosed the package for the new CEO.)
As we know, the council’s head of Community Development, Vikki King, was thrust into the top spot by the Four Horsemen who decided to axe Peter Schneider and replace him with the person they wanted in the job.
Given this extraordinary turn of events, I thought it logical that we, as ratepayers, should see the credentials and work history of the person we just “hired” as our chief executive.
The request was denied by Ms King herself.
Here we go again.
It’s just a few weeks since the release of the community survey which showed the people of Warrnambool have had a gill full of being treated like shiitakes, but nothing has changed and, if the past week is any guide, it’s worse.
We were not told by our councillors that the former CEO was about to be sacked, or why, and in some sort of perverse charade the councillors spent the last monthly meeting congratulating themselves many times over for their brilliance.
We also don’t know the cost of this whole set up, and because the coup conveniently happened after 30 June, that cost won’t be included in this year’s annual report.
Amidst all this darkness, it’s the terriers who have to do the digging and delving and poke holes into the walls so that the light gets in.
As I say many times over, scrutiny of our council is not about personalities, but process: when decisions are made on behalf of the public, and involve public money, we have a right to know.
So what do we know?
Well, we know Ms King has been with the council for five years as head of Community Development and, according to some of those who worked with her over that time, is known as “a straight shooter”.
As it happens, Ms King’s contract was due to end in August and who knows what that meant for Ms King’s plans or her future with the WCC?
It doesn’t matter now, because Crs Neoh, Gaston, Cassidy and Owen had Ms King pegged for a whole new post and signed her up for a full 12 months, all without asking the Mayor or the other two councillors.
They didn’t even bother to put an ad on the tearoom noticeboard: “Vacancy. Long hours. Pays well.”
Ms King told the local newspaper last week that she had no idea what was coming.
Judging by the evidence put forward so far by Mayor Tony Herbert, neither did Mr Schneider, who had passed his performance reviews and received a pay rise before being booted out the door without so much as a farewell speech and a WCC tie-pin.
Ironically, Mr Schneider’s departure is the latest in a string of senior resignations from the council these past 12 months under his watch.
Among them was head of governance Anne-Marie Neal, who reported directly to the CEO – both Bruce Anson, and then Mr Schneider – before she departed suddenly late last year without any explanation or comment by the council.
A reader alerted me to a case listed in the Magistrate’s Court for September involving a worker’s compensation claim between Ms Neal and the WCC, so perhaps the circumstances surrounding that situation will soon become clearer.
Another three senior managers have also resigned in the past six months: Manager Economic Development Shaun Miller, Facilities and Projects Manager Ben Storey and, most recently, Director City Infrastructure Scott Cavanagh.
The council itself now has more holes than Swiss cheese and the councillors have never been more divided, with many now asking the same question: how did it get this bad?
And as the Warrnambool Ratepayers Association asked at the weekend, where to from here to turn it around?
As we head toward an election on October 24 and have a chance to determine who runs our city, both behind the scenes and up front, these questions have never been more important.
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Million dollar question on CEO axing remains unanswered
Carol Altmann – The Terrier
Questions: Are we about to throw $1 million of ratepayers’ money down the drain because the four horsemen of the apocalypse decided to sack the WCC chief without warning?
This is the figure being floated about and because Crs Owen, Neoh, Gaston and Cassidy refuse to tell us the full cost of their night of the long knives last Monday, I am going to say it must be close to the truth.
The math makes sense: 2.5 years left on a $340,000 contract, plus paying the acting CEO another $340,000, plus legal fees, leave entitlements etc.
If it isn’t such a huge cost, why is it secret? Ballarat City Council dumped its CEO in May – after a damning Ombudsman’s report – and the payout was in the local paper by the following Friday.
This time last year, these same four councillors voted for a rate rise of 4.5% – almost double the cap.
We were told this massive jump was essential to raise $700,000 extra to pay for bridges and footpaths and all of the crumbling infrastructure that had not been properly maintained under their watch (all ‘inherited’ according to Cr Neoh, who has since told us not to look at the past.)
Every cent of that rate rise will now go toward paying for their treachery.
Thankyou very much Crs Owen, Gaston, Neoh and Cassidy.
These councillors have clearly lost touch with the average ratepayer who they claim to represent and that, to me, is the greatest travesty.
We – and I am among those who have watched my rates go up and up – are just pawns in a power game. A game that was cooked up many months ago.
The acting CEO Vikki King didn’t suddenly get a tap on her door last week from Cr Gaston, or Cr Neoh, or whoever was given that exciting task, to see if she was free for the next 12 months.
How convenient that the acting CEO was slotted into the $340,000 a year role without it being advertised, or offered to any of the other senior managers who might have been interested.
It might be legal, but is it ethical?
Speaking of ethics, I am yet to see one shred of evidence as to why the CEO had to be knifed without so much as a final warning.
If the council gets out of this without a legal battle of some description, especially given the CEO’s professional reputation is now in tatters, I will be amazed – and grateful, that this attack in the night will not leave us carrying an even greater financial burden.
This story is far from over.
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Barry the Boolshite detector on why the CEO had to go
Barry runs an eye over the statement issued by the four W’bool City councillors who orchestrated the coup against CEO Peter Schneider.
Carol Altmann – The Terrier
Having read the statement issued to the Warrnambool Standard today by the four horsemen of the apocalypse, there was only one thing to do: call in Barry, the Boolshite Detector.
Barry is the only one capable of pulling apart this 430-word piece of councillor codswallop, offered up as an excuse as to why the CEO’s head was suddenly cut off in the dark of night, with no witnesses, other than those sitting behind closed doors in the kangaroo court of 25 Liebig St.
These same four also last night passed a gag order, which is probably not enforceable and seemingly doesn’t apply to the four who passed it. This gag prevents the Mayor or any other councillors from revealing any further details of what unfolded, especially how much it will cost us ratepayers.
So, in less than two hours last night, four of our seven councillors sacked the CEO, gagged the Mayor, and another two councillors, before creeping out this morning – bloodied hands washed and dried – to tell us it was all for our own good.
Over to you Barry. His bullshite interpreter is in blood red.
Statement to the Standard by Warrnambool City councillors Sue Cassidy, Kylie Gaston, Mike Neoh and David Owen:
“Some will wonder why we are seeking to make a key personnel change.
You must be wondering why we decided to throw the CEO out now, so close to an election, when you could throw us out.
While you may understandably be feeling some concern, we’d like to remind you that every large organisation, whether government or private, must occasionally, in the best interest of that organisation, go through such a process.
We like to sound patronising and caring as we move into election mode.
You have elected us to make the right decisions for this community.
We make the decisions and then tell you about them later, and this time we have put a gag in place, just for extra comfort.
Sadly some recent choices have not worked out and now we are attempting to correct that situation, prior to the next council term.
We %$%ed up the appointment process, we signed off on all the performance reviews, and now we are trying to cover our asses before the next election. (Barry, tone down the language.)
If we didn’t feel so strongly about the situation we would never have made this decision so close to an election.
We had hoped to chop the CEO before Covid-19, now we are running out of time.
Council and the community have high expectations and we have set a high bar.
So high that, for example, we let certain staff run amok with council corporate credit cards – that little blip – but did nothing until it was exposed by that pain in the bum, The Terrier.
The community and staff surveys have sent a loud and clear message about the organisation’s communication and engagement as being both lacking and dismissive in nature.
These results were extremely concerning given that ‘staff culture’ and ‘community engagement’ was asked to be elevated as key organisational priorities and risks.
See above.
It has also been baffling as to why one of our most successful engagement strategies, the Warrnambool City Council 2040 Plan, has seen the operational implementation of the plan both neglected and stripped of resources after being given contrary assurances at the highest level.
The CEO was so busy getting rid of the bullies and sorting out the mess he inherited, that he didn’t focus enough on the 2040 plan. That is baffling, and sackable!
Having engaged with thousands of community members and almost 100 supporting organisations in developing the plan, it’s disturbing that councillor’s continual requests for appropriate operational support has fallen on deaf ears.
He had 17 months to get the Titanic in order, what more does he want?
This is just not acceptable.
Having someone milk our credit cards? Shrug. Spending $40,000 on renovations to a council-owned apartment where the former CEO’s executive assistant lived for 30 years without a written lease? Yawn. Watching Flagstaff Hill bleed us dry while we raise rates to double the cap? Boring! Not getting that 2040 Plan up and running? Now you’re talking! Unacceptable!
Councillors have developed a plan with you, the community, and we made a pledge to you that we are committed to it being resourced and implemented.
There are lots of other plans we have developed too, and done nothing about – they sit on shelves – but this one! This is the one! You want it, you got it!
We are confident that the acting CEO will reinforce our values, particularly with staff, and pursue Warrnambool’s interests with passion and represent us well with external stakeholders.
We know this, because we had her lined up from day one of this coup plan. Pity we didn’t hire her in the first place and saved you all a lot of money.
Whilst there may be diverse views in the community and among councillors, potentially the one thing that will hold the city back is obsessively dwelling on the past and using the past as an excuse.
This has worked for others, so we thought we might try it too. Forget the past! And especially forget the parts where we might have aided and abetted a certain culture while the council slowly fell apart financially, in community trust and in staff morale. Move on, people!
We believe that our decision, as difficult as it has been, is in the very best interest of our community.
And that’s why we did it without telling you anything.
To convey a clear plan and pathway forward, for you the community, we have put in place a time- line that will see the newly-elected council undertake a recruitment process post council election which is scheduled for October 2020.
We are already telling the next council what to do. This is how we roll.
Now that the decision has been made, we expect the Mayor and all councillors to move forward and continue to focus on the aspirations and needs of the community for the remainder of the current council term.
Sorry, this is too much even for Barry. He has passed out.
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Carol Altmann – The Terrier