New ARLC boss David Smith resigned from his job with Lloyds Banking Group, one of the UK’s biggest lenders, after his Australian unit posted a net loss of over $1 billion in 2011.
As Chief Executive of Lloyds International, Mr Smith made a statement (before anyone knew that he would be the next head of Australian rugby league) that Lloyds’ Australian business “is on a very strong footing” and that he felt it was “the right time to seek new opportunities”.
We now know what those “new opportunities” are.
The fact that Lloyds have asked Smith to hang around until the first of February to help with the leadership transition indicates that he is highly thought of by the bank’s board.
When a key executive decides to leave he is normally ushered out before the tea lady arrives.
We can assume that David Smith has accepted a drop in salary.
We cannot compare Smith’s Lloyds package with JP Morgan Chase & Co’s Jamie Dimon, who takes home $23.1 million in salary, bonus, stock and options. Nor can we compare him to Wells Fargo chief John Stumpf ($19.8 million), Richard Fairbank, CEO of Capital One Financial Corp ($18.7 million) or Citi’s CEO Vikram Pandit ($14.8 million).
But you don’t get to preside over $50 billion worth of assets without being very well remunerated.
I applaud the commission for not reacting to the mainstream media, and for not making a knee-jerk, early decision.
They have taken their time and been very selective, and let’s hope they have backed a winner. I think they have.
Who cares if the new main man does not know who Cam Smith is? Who cares if he did not attend a game this year?
David Smith has inherited a group of outstanding human resources within the NRL, and his key role will be to bring them together as a united team and help them grow.
He also needs to be able to implement the ARLC’s Strategic Plan, while also being proactive enough to build his own plan and have it endorsed by the commission.
The 16 NRL clubs, especially the Storm, the Sharks, the Panthers, Souths, the Knights and the Titans, should benefit from Smith’s background in corporate loans.
Saving these clubs and helping them turn a profit is a hell of a lot more important to the game than sitting on the hill having a hot dog with Freddie Blogs.
ScottWoodward.me
Roar Guru
Big Time, I haven't seen his job description but the intended role of the ARLC is to write the strategic plan and the CEO's job is to implement it. You would expect that David Smith would also be a co author of any plan.
ScottWoodward.me
Roar Guru
Mushi, They are both CEOs and both work for Banks...hows dat
Big Time
Guest
The ARLC will be the ones in control of growing "exisiting heartlands" won't they? Is that not why they were put in place. Smith will be there to grow the business.
mushi
Roar Guru
He probably will have some long lunches but they would have been paying him either way right? Personally I’d think it was dumb to elect to get absolutely zero return for that cash rather than some benefit. As I said if you go to a competitor you get walked and lose your deferred bonuses. I do find it hilarious that someone is saying that an industry that just saw people fired on mass by turning off their security passes is a little too chummy and not cut throat enough! Did they literally shoot people dead in your corporate world? With regards to his replacement not needing baby sitting unless he was grossly negligent and not doing his job before hand then there will be elements he isn’t across. Given one of the bigger work streams at Lloyds International has been the sell down of their lending book I’m sure there is value in having him conclude some of those negotiations.
ScottWoodward.me
Roar Guru
TOM lol......Im tipping his misses has not seen much of him over the last 12 months based on his 6 months pf plane trips. As long as he is free for 10 mins at halftime she should be happy.
ScottWoodward.me
Roar Guru
Mushi, It was much different in my corporate world. Much more cut throat, dog eat dog. I personally think it is dumb, the guy who he is handing off to was in charge of Operations so he should not require a lot of baby sitting. I expect Dave will be having a heap of loooong luches with NRL people.
Tom
Guest
I will love Dave's excuse when his wife tells him to get off the couch and stop watching football all day........."I am doing something dear, I am working hard on homework for my new job".
mushi
Roar Guru
Not saying he isn't a good catch – I think he will be good. But having a hand over period isn’t really a surprise or an endorsement. Every senior person I've seen that’s elected to move on to a non competitor over recent years (including 4 regional CEO’s in more integral roles than Smith) has worked through a hand over period. The targeting by other banks, I think you’ll find that he’ll lose his deferred bonuses for that. And if he was moving into such a role they wouldn't do the hand over.
ScottWoodward.me
Roar Guru
mushi I think all of that probably, but he is still a good catch. The fact is he has some very sensitive information in his head and Lloyds are happy to keep in there. That is a big rap for the guy. You would think he would be targeted by other banks even as a consultant to a board.
ScottWoodward.me
Roar Guru
oikee the NRL is more about NSW and Qld. Your comments are short sighted
ScottWoodward.me
Roar Guru
JVGO Good comparison, he certainty didnt set the world on fire.
mushi
Roar Guru
Scott it isn't that shocking that he is working through his notice period. He’s not moving to a competitor, he's not involved in the bank's main operations and he’s leaving rather than being ousted, I’d be more confused if they elected to just turf him rather than have a hand over period. I do wonder if there are some cynical motives for him moving to a sports administration role as it might be a carve out for his deferred bonuses meaning he probably wasn't allowed him to keep them if he moves directly into a more commercial field.
Mushi
Guest
Isn't it also misleading to spend a paragraph throwing out the salaries on the bank CEOs without referencing that smith wasn't even remotely in a similar role?
oikee
Guest
Melbourne wont be losing out on games. I think he killed 2 birds with one stone by fixing the draw for Origin. First he got rugby league fans on side by making sure the 2 states involved got there game back. Melbounre still has a game in 2015. It is better than them getting a game every year. Who really benifits from that? the Government because Queenslanders and Blues have to travel every year to see our game being played in some ungodly city at a ungodly middle of the week. Utter Folly, madness. So he fixed that. Also what this now allows is for Melbourne and maybe even other cities to bid for internationals, the all-star game is also up for grabs now, and maybe the world club challenge might become avalible. (and these games are on sensable days, you know , the Weekend, so league fans can tavel to these cities if we wish to hop on a plane and do a overniter) Plus 2017 we will have world cup games to bid for, so Melbourne wont be missing out, and they wont be getting our origin games every year. Origin is sacred. nuff said.
ScottWoodward.me
Roar Guru
james The main stream media had about 15 names over the last 6 months and kept getting it wrong. Not even 2 members of the Commish knew about Smith. The game is very lucky to have a guy with this pedigree embrace RL.
ScottWoodward.me
Roar Guru
Greg Obama has never ran a business and he become Prez.
ScottWoodward.me
Roar Guru
Johnno Melb = Aust sport it is that simple. Not their smartest call to brush.
ScottWoodward.me
Roar Guru
Fonzie Spot on and I am glad the Commish thought that way. Some of the names that the main stream media were promoting were light weights.
ScottWoodward.me
Roar Guru
Fred I agree but so what! I can assure you traveling all the time and having so much down time in your life wasted at airports is a novelty that wears off quickly. If you have ever seen his new offices at Moore Park it was an easy decision. What a great place to go to work everyday.
JVGO
Guest
At least its not Jon ONeill.