Super funds seeking Cleanaway meeting after boss apologises to all staff

Please explain: Cleanaway CEO Vik Bansal has sent a company-wide email to staff but is being asked more questions.

Cleanaway CEO Vik Bansal has been sanctioned by the company’s board over behavioural issues. Picture: Waste Management Review

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 after revelations of alleged bullying by its high-profile chief executive dragged the company into scandal this week.

The Australian Council of Superannuation Investors is eager to meet with the board as soon as next week to discuss Cleanaway CEO Vik Bansal’s admission that he crossed the line with staff and was “overly assertive” with employees.

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, which together own on average 10 per cent of every ASX 200 company.

Other fund managers have also contacted the Cleanaway board to discuss the improper behaviour of Mr Bansal.

He was appointed the boss of the waste management business five years ago, and under his watch its share price has rallied 300 per cent.

But investors are taking the admissions and allegations seriously at a time when similar scandals have engulfed AMP and QBE.

Mr Bansal sent an email to staff on 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, which was obtained by The Weekend Australian.

“The board put out a statement to the ASX acknowledging that there had been an investigation into my behaviour as a CEO and elements of my management style.

“As a result, we introduced a range of measures including executive leadership mentoring, enhanced reporting relating to my engagement with employees, and monitoring of my conduct.

“I would like to sincerely apologise to all of you about what has occurred and related attention it is bringing to Cleanaway.”

Fund manager and major Cleanaway shareholder Pengana Capital has spoken to the board of the waste management business to express its concerns.

Pengana senior fund manager Rhett Kessler told The Weekend Australian he was concerned “on two levels”.

“Firstly we want to be clear what the problem is and secondly we need to understand whether there are enough insiders that are dissatisfied enough to cause damage by going public,’’ Mr Kessler told The Weekend Australian.

The allegations include mass exits of senior executives amid concerns about Mr Bansal’s alleged view of safety protocols as an unnecessary cost centre.

It has been reported that Mr Bansal used colourful and threatening language to employees.

“I think in a company of 5000 people there would be one or two people that might be aggrieved,’’ Mr Kessler, whose fund has just under 1 per cent of the company, told The Weekend Australian.

“But if they are a good business you want good management — you don’t want smoke.”

But he also raised the issue of companies being damaged by aggrieved insiders and being revealed by the press.

“It seems to be the flavour of the month at the moment to beat up on companies, and this has that whiff about it, but I am concerned there is enough problems for it to get out to the media,” he said.

For now Pengana is backing the Cleanaway board.

“I think the board has responded well. They are trying to fix it and the board have made it clear that they won’t tolerate these persistent issues,” Mr Kessler said.

“We think the board has made the right decisions, managed the situation well. Now we need to ensure the execution of the solution resolves the problem.’’

In his email to staff Mr Bansal said that since the scandal had broken he had received support from colleagues and staff.

After the board concluded an investigation into Mr Bansal’s behaviour it stopped short of any financial punishment but publicly warned him in a statement to the ASX it would not tolerate any more indiscretions.

Mr Bansal said in his email on Friday that one quality of a leader is that they can recognise their mistakes, and that he believed with the support of the board and his executive team he had the opportunity to keep improving.

“I have received a number of emails, texts and phone calls from many of you expressing your support. I am humbled by your response and extremely grateful for your comments, and equally so to the customers and shareholders who have also been in contact.

“The feedback I have received has encouraged me to try to be a better leader for you.”

He defended the company’s health and safety record.

“Claims have been made that we have a poor record. We have made consistent improvements in our Total Recordable Injury Frequency Rate in the past five years reducing it by 58 per cent, which is a significant achievement, although we still have some work to do to achieve our goal of zero harm.

“We have focused on empowering our people to stop work if something doesn’t feel safe, improving visible safety leadership, maintaining and upgrading equipment and investing in technology that enables safer operations — particularly for our drivers.

“This year has been difficult for everyone and I am very proud of the way in which all of you have responded to the needs of our customers and communities to maintain our essential services.”

Mr Bansal said the COVID-19 Response Committee had worked tirelessly to provide a safe workplace and operational environment, while ensuring the company followed government regulations.

There have been allegations in the press that some Cleanaway staff were discouraged from working from home.

“As you’ve heard me say, our No. 1 priority has always been ensuring all our employees are safe, and that every employee has the right to go home safe, every day,” he said.

“Our other two key principles were to keep people employed, and to keep servicing our customers to the best of our ability. Thank you to everyone who has gone over and above to achieve these goals.”