Australian Wool Innovation ex-CEO paid whopping $479,531 in termination payout

Australian Wool Innovation has come under fire after paying a nearly half-a-million dollar redundancy figure to its past CEO, Stuart McCullough. Mr McCullough, who was made redundant in April following a controversial overseas posting, was paid $479,531 by AWI as part of his termination package, as revealed by the company’s 2023-24 annual report. In October 2021, Mr McCullough was appointed AWI’s chief marketing and innovation officer — a 30-month stint in Europe which copped criticism for its lack of a detailed job description. The role had no advertised application process, and AWI did not provide information on the salary Mr McCullough would receive. However, the posting was eventually terminated as a result of lower-than-expected revenue, changed financial circumstances, and the successful completion of Mr McCullough’s secondment overseas, according to AWI. AWI’s treatment of Mr McCullough has been subject to scrutiny by industry leaders who say there has been a “lack of transparency” surrounding his overseas appointment. “This role of CMIO that was created for Mr McCullough has always lacked transparency and rigour, and was noted by the Australian National Audit Office, who examined the AWI board meeting papers during the second half of 2021 when the role was created,” WoolProducers CEO Jo Hall said. Ms Hall said the ANAO found the AWI board’s discussions and decision regarding Mr McCollough’s European posting was never documented. Ms Hall also said of Mr McCullough’s termination payout, while most likely in line with contract obligations, it was “very hard to reconcile this figure”. “At a time when woolgrowers are doing it exceptionally tough with low prices and increased costs, this figure seems hard to justify,” she said. “The 2023-24 annual report also indicates an increase in the total remuneration figure of the AWI board, which increased by $22,271 to a total of $754,791. “While this might not seem a lot over the seven directors and could be attributed to an inflationary increase, unfortunately woolgrowers aren’t afforded the same luxury when it comes to their wool prices that have been received over the past 12 months. “This is also on top of the fact that the AWI board are paid comparatively higher than other RDC (research and development corporation) directors.” In response to the criticism levelled against the termination payout, an AWI spokesman said “Mr McCullough was paid his legal entitlements”. “It is worth noting he was CEO for 11 years and with the company for nearly 23,” he said. “With his departure, substantial savings will be made by the company.”