Latest news with #ShemaraWikramanayake
Reuters
24-07-2025
- Business
- Reuters
Macquarie shareholders challenge executive pay as regulatory, earnings stress mount
SYDNEY, July 24 (Reuters) - Macquarie Group ( opens new tab, employer of Australia's best-paid CEO, said on Thursday it will review its executive compensation following a regulatory compliance lawsuit as shareholders appeared to vote against its salary plans for the first time at its annual meeting. The investment bank also announced that its chief financial officer was retiring, a surprise development which takes out one possible successor to current leader Shemara Wikramanayake who started in 2018, and reported a dip in first-quarter profit, pushing its shares lower. The rethink of its top-level pay reflects an unusual degree of investor pushback against a company nicknamed the millionaire factory due to its compensation as heightened regulatory scrutiny and weaker earnings at some of its global businesses stoke disquiet among shareholders. Cooling M&A activity and relatively subdued oil and gas markets have squeezed profit at two of its four main operating units. Adding to the pressure on the investment bank, the Australian corporate regulator sued Macquarie in May accusing it of misreporting up to 1.5 billion short sales. Macquarie has said it picked up and reported the mistakes and is reviewing ASIC's claim. "It was always likely that there were going to be some observers who were going to say 'you should have gone more one way or the other'," Macquarie Chair Glenn Stevens told media before the annual meeting in Sydney. "I find it a little bit disappointing how many feel that, but it is what it is and we have to hear that message," Stevens, who was Reserve Bank of Australia governor from 2006 to 2016, said. At the meeting, Stevens told shareholders the "remuneration impacts ... will be an FY26 matter, about which the board will come to a view over the period ahead". CEO Shemara Wikramanayake earned A$30 million in 2024, making her the highest paid chief executive among ASX 100 companies and the only woman in Australia's top 20 highest paid executives, according, opens new tab to the Australian Council of Superannuation Investors. Proxy advisors to Macquarie shareholders recommended voting about 25% against the company's remuneration report, according to slides presented at the meeting, although Stevens said the company would publish a final result later. If more than 25% of shareholders vote against an Australian company's remuneration report for two years running, shareholders can hold another vote on whether to dismiss the entire board. Macquarie shares were nearly 5% lower by midsession, compared with a flat overall market (.AXJO), opens new tab, as investors fretted about the multiple headwinds facing the company. Macquarie said profit in the three months to June was lower than a year earlier due to lower contributions from its asset management arm and commodities and global markets unit. The company did not disclose specific profit figures in the limited trading update. "We see (Macquarie) as a great business caught in the midst of both its own transition and global realignment of geopolitical alliances and capital flows," said Jarden analysts in a client note. CFO Alex Harvey, asked by media to elaborate on his departure, said only that he had achieved what he set out to do and it was time to promote his deputy Frank Kwok. CEO Wikramanayake, asked about her future in the role, said: "I'm committed to Macquarie for as long as Macquarie needs me."
Reuters
24-07-2025
- Business
- Reuters
Macquarie faces shareholder backlash over executive pay as CFO steps down
July 24 (Reuters) - Macquarie Group ( opens new tab, the employer of Australia's best-paid CEO, said on Thursday it will review its executive compensation following a regulatory compliance lawsuit, as some shareholders prepare to vote against its salary plans at its annual meeting. Chief Financial Officer Alex Harvey will also retire, the company said, an unexpected development which deprives it of one possible successor to current leader Shemara Wikramanayake who started in 2018. Shares tumbled as much as 5% in early trade to A$214, their biggest intraday percentage drop in three months, and underperformed a 0.2% gain on the broader benchmark (.AXJO), opens new tab. Chairman Glenn Stevens said on a media call the non-binding remuneration vote at Thursday's AGM "does appear to be quite close." When asked about potential shareholder opposition, Stevens said: "It was always likely that there were going to be some observers who were going to say 'you should have gone more one way or the other'. I find it a little bit disappointing how many feel that, but it is what it is and we have to hear that message." The vote can be defeated with 25% opposition, and if an Australian company receives two "strikes" in consecutive years, shareholders can hold another vote on whether to dismiss the entire board. The leadership changes and pay review come as Australia's corporate regulator ASIC has sued Macquarie, alleging it misreported up to A$1.5 billion worth of short sales over 15 years, misleading the market and violating post-financial crisis transparency rules. Stevens said Macquarie is focusing on "remediation of regulatory issues, and associated strengthening of the company's risk culture," adding that "where shortcomings are identified, the board holds staff accountable, seeks to incentivize future improvement and reflects on what the issue might tell us about the organization's culture." CEO Shemara Wikramanayake earned A$30 million in 2024, making her the highest paid chief executive among ASX 100 companies and the only woman in Australia's top 20 highest paid executives, according, opens new tab to the Australian Council of Superannuation Investors. Separately, Macquarie reported a decline in first-quarter net profit due to lower contributions from its asset management arm and commodities and global markets unit. The company did not disclose specific profit figures in its quarterly trading update. The asset management division experienced softer performance primarily due to timing of investment-related income, while commodities recorded lower net interest and trading income in North American Gas and Power, it added.
AU Financial Review
07-07-2025
- Business
- AU Financial Review
Macquarie, Fortescue and BlueScope chiefs headline delegation to China
Macquarie chief executive Shemara Wikramanayake and billionaire Fortescue chairman Andrew Forrest are among a delegation of high-profile business executives who will accompany Anthony Albanese on a trip to meet Chinese President Xi Jinping and Premier Li Qiang next week. While details are yet to be finalised, two people briefed on the matter said Wikramanayake and Forrest would be joined by BlueScope Steel chief executive Mark Vassella, HSBC Australia chief executive Antony Shaw and Herbert Smith Freehills Kramer chairwoman Rebecca Maslen-Stannage.
Herald Sun
15-06-2025
- Business
- Herald Sun
ASIC drafted 17 briefings on Macquarie Group ASX MQG in 10 months
The corporate regulator recoiled at Macquarie's 'legalistic engagement' in a meeting with the bank's boss, Shemara Wikramanayake, to discuss the scandals happening inside the investment bank that led to four enforcement actions in a year. The Australian Securities and Investments Commission prepared 17 briefings related to Macquarie over the 10 months to May this year, documents released under Freedom of Information show. They hint at growingconcern at The Australian Securities & Investments Commission over Macquarie, which was the target of regulatory interventions for misreporting up to 1.5 billion short sale trades and allegedly manipulating the electricity market. ASIC chair Joe Longo described his concern with Macquarie's engagement with the regulator and repeated risk failures last month as 'a kind of hubris'. One briefing paper, provided to 14 different ASIC staff, outlines the topics canvassed by the regulator when it met with Ms Wikramanayake on September 19 last year. That was six days before ASIC fined it $5m for suspicious electricity trades. The paper shows ASIC took issue with Macquarie's overly 'legalistic engagement' after wrapping up an investigation into the financial giant's failures that allowed 50 breaches of market integrity rules by allowing clients to place their orders within minutes of the market close. ASIC reminded Macquarie two of its most senior executives 'have individual obligations as accountable persons', a nod to the Financial Accountability Regime, which enables the regulator to target executive pay. The millionaires' factory paid Ms Wikramanayake $24m over the last financial year, and $25.2m the year before. ASIC also flagged its interest in Macquarie's growing involvement in private and unlisted markets. The regulator sought to remind the bank 'it should come as no surprise that we will be looking at one of the largest transactions involving Australian firms'. In particular, ASIC highlighted 'regulatory inconsistencies', being interested in whether companies were engaging in 'regulatory arbitrage between public and private markets due to inconsistent obligations'. Macquarie's role in the $480m Shield Master Fund collapse also appears in ASIC briefs. Macquarie offered access to Shield through its Wealth Wrap superannuation platform. 'We are taking these matters very seriously, particularly having regard to Macquarie's significant position in the Australian financial system and its potential impact on consumers and markets,' ASIC said. Only a handful of the documents ASIC prepared on Macquarie were accessible by The Australian. ASIC senior lawyer Haydar Tuncer said many disclosed law enforcement methods and procedures and 14 of the 17 documents demonstrate 'how ASIC determines whether or not it will pursue possible regulatory action'. 'Disclosure would forewarn the regulated population of ASIC's considerations and give insight into the aspects of the way in which ASIC goes about its task of regulatory compliance,' he said. 'Release of this information would enable persons to tailor their activities to evade scrutiny, thus circumventing the established legislative structure for regulation of market misconduct matters.' Mr Haydar noted three documents 'comprise confidential information that an authority of a foreign government – a foreign regulator – has shared with ASIC on a confidential basis'. 'Disclosure of such information would have a direct impact on ASIC's international memberships and reputation and ultimately our ability to obtain confidential information to support our enforcement, supervision and regulatory activities,' he said. While the foreign regulator is not disclosed, ASIC's other briefing notes refer to probes by the United States Securities and Exchange Commission and the United Kingdom's Financial Conduct Authority. In one instance, Macquarie overvalued 4900 large illiquid collateralised mortgage obligations, after the SEC found the bank attempted to minimise losses by arranging cross-trades rather than selling the securities into the market. 'We consider this matter to raise serious concerns about Macquarie's risk culture and their management of conflicts of interest,' ASIC noted. 'Particularly problematic is the cross-trading aspect shows Macquarie preferencing the interests of institutional investors over retail mutual funds.' 'We are engaging with Macquarie on how they are ensuring that similar conduct would not occur within their Australian business.' A further three documents contained materials over which the Australian Prudential Regulation Authority's secrecy provisions apply. Originally published as ASIC drafted 17 briefings on Macquarie Group in 10 months: Freedom of Information
Forbes
26-05-2025
- Business
- Forbes
Beyond The Ivy League: Is Your MBA Investment A Risky Bet?
NEW YORK, NEW YORK - SEPTEMBER 24: Shemara Wikramanayake, CEO, Macquarie Alum of Harvard Business ... More School, speaks at the Bloomberg Global Business Forum on September 24, 2024 in New York City. (Photo byfor Bloomberg Philanthropies) An MBA from Harvard Business School. The name alone conjures images of unparalleled prestige, a guaranteed golden ticket to a future of leadership, influence and success. But what if that golden ticket just got revoked? Imagine this: You've poured your life savings, sacrificed years, and battled through gruelling admissions to secure a coveted spot at Harvard Business School. Now, you're an international student, and suddenly, the very foundation of your dream – your ability to legally reside and study in the U.S. – is under fire. This isn't a hypothetical scenario; it's the harsh reality unfolding at the 389-year-old institution. The Department of Homeland Security has revoked Harvard's certification to host international students, at the time of publication it has been granted a temporary restraining order to continue enrolling international students while the case proceeds. For nearly 7,000 international students – over a quarter of Harvard's entire enrolment – their future is a legal battleground, shrouded in the "incomprehensible" chaos that now defines our world. For MBA candidates, especially, this is a wake-up call. Harvard Business School (HBS) relies on a staggering 50% international student body to fuel its renowned case learning methodology and foster the diverse perspectives crucial for future leaders. What happens when that wellspring of global talent is threatened? Your MBA isn't just a degree; it's a massive investment. With tuition fees pushing $100,000 annually, you're not just buying an education; you're buying a promise of return on investment. But what if that promise is fracturing before your eyes? The landscape of higher education is no longer a stable, predictable terrain, where the profile is dominated by the pedigree of the United States market. The proliferation of strong offerings from international universities demonstrate the battleground, where universities are increasingly commercialized, and students are the consumers. The days of simply "transferring knowledge" are over. Today, it's about teaching you how to think, how to evaluate, and how to critique in a world defined by volatility, uncertainty, complexity, and ambiguity (VUCA). Or, as the newer model suggests, a world that is Brittle, Anxious, Nonlinear, and Incomprehensible (BANI) developed by Jamais Cascio, a futurist and researcher affiliated with the Institute for the Future Hong Kong University, already recognized as the "Most International University in the World" in 2023, isn't waiting politely. They're actively poaching Harvard's potential candidates, offering a stark alternative to the unfolding drama in Cambridge, Massachusetts. To add insult to injury they are accessing candidates through the Harvard Alumni Club in Hong Kong. Patti Brown, interim Associate Dean MBA Programs and Executive Degrees at Said Business School, University of Oxford and a veteran in international higher education, doesn't mince words: "The United States has long been considered the safe bet for business education… But with shifting dynamics, it's worth asking—is the U.S. still the best place to invest in their future hopes and ambitions?" This isn't just about where you get your degree; it's about the very quality of your leadership development. In a BANI world, effective leaders don't just respond to chaos; they cultivate organizational cultures that generate innovative solutions. This demands continuous learning, embracing diverse perspectives, and cultivating pluralistic thinking. As Brown emphasizes, "Growth and innovation in business education will come not only from standalone business schools, but also from universities that integrate business learning with the broader academic ecosystem." The MBA of the future isn't a one-size-fits-all generalist program. It's about personalization, technology, and, crucially, employability. Generalist programs risk obsolescence, Kevin Ellis, Former Senior Partner EMEA PwC UK and keynote speaker at the 2025 AMBA Global Conference explains the seismic shifts around business education in the university sector; 'For many years, PwC and similar firms relied on an apprenticeship model, where new MBA hires learned on the job under the guidance of senior staff. The organisational structure resembled a pyramid, with a large base of junior employees performing foundational tasks that provided essential learning opportunities.' He continues to explain how AI is a major disrupter to this model; 'Many of the routine and menial tasks once assigned to junior staff are now automated, leading to a more diamond-shaped structure. With fewer entry-level roles, organisations are hiring fewer graduates. Clients increasingly demand faster, more cost-effective solutions, leaving little room for the traditional on-the-job learning curve. In this new environment, MBA programs must adapt by integrating foundational professional skills into the academic experience. Core competencies such as strategic thinking, AI-assisted research, and analytical reasoning—skills traditionally developed through workplace experience—must now be built into the curriculum. AI is, in many ways, outsourcing cognitive effort; graduates must learn to complement it with critical thinking and human judgment.' Business Schools need bold hairy strides rather than incremental steps to ensure their students have the opportunity to future-proof their careers. In today's fight for talent attracting international students is not simply about money, its a strong indicator of the robustness of the global influence, and soft power of the country hosting business schools. Business schools remain the bastion of a country's global influence and thought-leadership and bedrock for innovation and growth. Brown states; "Our experience indicates that the majority of MBA candidates now enter the program with a solid grounding in the core disciplines traditionally covered in business education. At Oxford Saïd Business School, we draw on the cutting-edge research and interdisciplinary expertise of faculty from across the University of Oxford to curate a curriculum that responds to the rapidly evolving needs of our students and the global business landscape. As the motivations for pursuing an MBA have shifted—no longer centred solely on traditional career paths such as consulting—we are actively engaging with the question: how can we best equip our graduates to make a meaningful and lasting impact on the world.' So, as you weigh your options for an MBA when considering business schools, ask yourself: Are you chasing a fading legacy, or are you investing in a future-proof education that equips you to thrive in a world where even the most venerable institutions are proving to be "brittle" and "incomprehensible"? The choice you make now could define your entire leadership career.
