Super Retail Group has terminated its chief executive in light of new information about his alleged relationship with the former head of human resources, which is currently the subject of Federal Court proceedings.
In a statement to the ASX yesterday (Tuesday, 16 September), Super Retail Group (ASX: SUL) advised the market that it has terminated the employment of its group managing director and chief executive, Anthony Heraghty, with immediate effect.
The board of SRG – which owns Supercheap Auto, rebel, BCF, and Macpac and is one of Australia and New Zealand’s largest retailers – has made the decision, the statement noted, “after receiving new information from Mr Heraghty regarding his relationship” with the company’s former chief human resources officer, Jane Kelly.
Given the new information provided, the company said, the board concluded that Heraghty’s prior disclosures “were not satisfactory”.
The board has also exercised its discretion, the statement went on, to “lapse” Heraghty’s incentives, all unvested incentives, and vested but unexercised rights. According to The Age, those incentives would have come to $8.7 million; however, he will still be eligible to receive a $620,760 cash bonus this month.
The news follows the unsuccessful application, in March, from Rebecca Farrell, SRG’s former chief legal counsel, to have a suppression order lifted so details of an alleged settlement agreement could be aired in public.
Whether the settlement agreement exists is yet to be decided.
Farrell, along with company secretary Amelia Berczelly, entered into without prejudice discussions with Super Retail Group over allegations of workplace harassment and bullying, poor corporate governance, and a secret relationship between key personnel.
At the heart of the dispute is a statement released by SRG that announced it expected “workplace litigation” by Farrell and Berczelly, although neither was named by the retail giant.
In apparent retaliation, Farrell and Berczelly’s solicitors at Harmers Workplace Lawyers released a statement shortly afterwards that alleged the relationship between the two executives was “long term” and a complaint was “removed from the integrity office and the head of risk and given to HR management answering directly to [the chief human resources officer]”.
The matter is ongoing in the Federal Court.
SRG’s chief financial officer, David Burns, has been appointed as the company’s interim chief executive, while the company undertakes a search for Heraghty’s replacement.
The board is also “carefully” considering, the ASX statement added, the implications that the new disclosures may have for the company, and any related matters.
Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
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