Cleanaway CEO Vik Bansal share sale probed by ASX
Cleanaway has been asked to explain why high-profile chief executive Vik Bansal sold a parcel of shares worth almost $10m just two weeks before the board disclosed allegations of bullying.
The Australian Securities Exchange has asked Cleanaway Waste Management to explain why high-profile chief executive Vik Bansal sold a parcel of shares worth almost $10m just two weeks before the board disclosed allegations of bullying.
On August 31, Mr Bansal sold 4 million Cleanaway shares on-market for $9.99m — two weeks before it issued a statement to the ASX about Mr Bansal’s conduct and admitted that his “behaviour should have been better and expressed contrition”.
The share sale was priced at around $2.50 per share.
The ASX issued the company a “please explain”, noting Cleanaway’s shares had dived more than 11 per cent to $2.24 in the days following the bullying allegations.
Cleanaway said although it was presented with the findings of the investigation on July 1 — two months before Mr Bansal offloaded his shares — it did not believe it was material to its share price.
General counsel and company secretary Dan Last said the disclosure of Mr Bansal’s behaviour and the selling of his shares were “consistent with market practice”.
“The general market practice is not to disclose details of internal assessments of senior executive performance, conduct and actions taken for matters of this nature,” Mr Last said.
“The company’s approach has been consistent with market practice. These are not matters that a reasonable person would expect to have a material impact on the price or value of the company’s securities.”
But investors are taking the chief executive’s apology to staff, and bullying allegations seriously at a time when executive scandals have engulfed AMP and QBE.
The key adviser to the nation’s biggest industry superannuation funds, which collectively look after almost $500bn Australia’s retirement savings has demanded a meeting with the board of Cleanaway Waste Management over its handling of Mr Bansal’s conduct.
The Australian Council of Superannuation Investors is eager to meet with the board as soon as next week to discuss Mr Bansal’s admission that he crossed the line with staff.
Established in 2001, ACSI provides a collective voice on environmental, social and governance issues on behalf of its members. They include 39 Australian and international asset owners and institutional investors, including many industry super funds.
Other fund managers have also contacted the Cleanaway board to discuss the improper behaviour of Mr Bansal.
Mr Bansal sent an email to staff last Friday apologising for his behaviour in the workplace and for the negative attention it has brought to the company.
“This week there have been a series of stories in the media relating to my behaviour in the workplace,’’ Mr Bansal began the email by The Australian.
“I would like to sincerely apologise to all of you about what has occurred and related attention it is bringing to Cleanaway.”
Mr Bansal was appointed the boss of the waste management business five years ago.
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