Investors are demanding transparency after QBE Insurance Group Ltd (ASX: QBE) suddenly sacked its chief executive with no details on why.
The insurance giant announced Tuesday morning that Pat Regan had been terminated from his position.
The company gave no information other than to say Regan was fired because his “workplace communications” did not meet the code of ethics and conduct.
So shareholders have been left to guess what had gone on, and whether the penalty was appropriate.
According to S&P Global Ratings, Regan’s departure provokes more questions than answers.
“The departure of QBE’s group CEO, which follows other senior executive turnover, could harm strategic continuity and raise uncertainty about culture and governance at the insurer,” the company stated.
Investment firm Allan Gray holds more than $400 million of shares in QBE. Its portfolio manager Simon Mawhinney told Nine that QBE was showing “poor corporate transparency”.
“The board has kept shareholders in the dark about the reasons and as shareholders we are therefore unable to assess the appropriateness of this significant decision.”
The Motley Fool has contacted Allan Gray for further comment. QBE declined to add any further comment.
QBE chair Mike Wilkins said Tuesday that the company is “committed to having a respectful and inclusive environment” and that Regan “exercised poor judgment”.
The board will initiate a culture review and establish additional channels for employees to “safely raise concerns”.
The dramas at QBE come after AMP Limited (ASX: AMP) lost its chair and a director last month over its decision to promote Boe Pahari as AMP Capital chief executive.
Pahari had faced serious sexual harassment allegations, with AMP defending its decision by saying they were “low level” offences. Since the Pahari’s alleged behaviour was aired publicly, other cases of alleged harassment have also come to light.
Regan replaced John Neal in the chief executive role at QBE 3 years ago. Neal’s bonus was slashed more than half a million dollars that year for not reporting a romantic relationship with his executive assistant.
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