JLL Australian CEO Dan Kernaghan sacked as company investigates culture of sleaze
After sacking its Australian boss, property giant JLL has been dealt another blow as a scandal erupts about a culture of misogyny and sexual misconduct.
Commercial property juggernaut JLL has been dealt a fresh blow as it is engulfed in a sex and sleaze scandal, as it is ruled out of the running for a prestigious industry award.
The global company’s Australian arm has been under the spotlight for allegations of abhorrent treatment of women by its executives, and for an apparent lack of effective action over serious complaints.
JLL had been named a national finalist in the The Property Council of Australia’s Award for Diversity, Equity & Inclusion, with a winner to be announced at the organisation’s annual awards gala in Sydney on September 25.
The award “recognises and promotes the positive contribution made by organisations that demonstrate a holistic and long-term commitment to diversity within the property industry”.
After the Property Council, and award category sponsor Grosvenor Place Sydney, were contacted for comment, the council said JLL would not be in line for the award.
“The Property Council has, with regret, asked JLL to withdraw their nomination from this year’s awards,” a spokesman said.
The spokesman declined to elaborate on why the withdrawl was regretful.
The award blow came after JLL’s global parent sacked Australian CEO Dan Kernaghan, who had been at the company for 20 years.
In a media statement late Tuesday, chief HR officer Laura Adams said the departure of was “effective immediately”.
“The company is launching a search for a permanent successor,” the statement said.
“JLL will continue to operate normally during this transition period, with all client services and operations remaining unaffected.”
Mr Kernaghan did not respond to calls and texts on Wednesday.
Mr Kernaghan’s departure followed shocking reports by The Australian that no effective action had been taken on sexual harassment and misconduct complaints about other high-ranking JLL men.
Mr Kernaghan was not personally accused of misconduct, however he was under fire for reinstating the employment of a man against whom a complaint had been proven.
According to the Australian, Victoria-based commercial agent James Jorgensen, had been poached from CBRE in 2023 - with help from a $2.8m sweetener.
Serious allegations against him by a female executive were the subject of an internal investigation by JLL, which stripped him of his leadership position - but not his employment - and gave him a formal warning.
His position was only terminated after JLL’s global leadership stepped in.
Among the mounting pile of misconduct claims were separate allegations a male staffer fondled his female colleague’s breast during a lap dance at Melbourne strip club Kittens.
The incident was reported directly to JLL’s global leadership, bypassing Mr Kernaghan, amid concerns about the Australian division’s handling of complaints.
According to The Australian, Mr Kernaghan had also been told about an alleged inappropriate group-chat in 2022.
JLL’s statement said it had appointed law firm Clyde & Co to lead a “thorough, independent investigation into the circumstances surrounding recent employment matters”.
“JLL will consider further actions as appropriate based on the results of the investigation, and in adherence to our values of teamwork, ethics, and excellence.”
