Nine surprised by CFO Paul Koppelman’s secret shareholding

Senior Nine insiders are understood to have been caught unaware when the ex-chief financial officer emerged with more than 100,000 shares in the company.

Former Nine chief financial officer Paul Koppelman resigned from the company, which owns the Nine television network and newspapers The Sydney Morning Herald, The Age and Financial Review, after just 10 months in the role. Picture: getty Images

Senior Nine insiders are understood to have been caught unaware when the former chief financial officer emerged with more than 100,000 shares in the media company — a fact only disclosed to investors after he suddenly left the company in July.

Former Nine chief financial officer Paul Koppelman resigned from the company, which owns the Nine television network and newspapers The Sydney Morning Herald, The Age and Financial Review, after just 10 months in the role, at the time citing personal reasons relating to the recent death of a family member.

Three months later, when Nine released its full annual report, it emerged that Mr Koppelman had a holding of 105,000 shares — worth just under $250,000, based on current prices — by the time of his departure on July 10.

Mr Koppelman left the company before the release of Nine’s full-year accounts on August 28.

Mr Koppelman did not respond when The Australian made several attempts to ask when he had come to own the 105,000 Nine entertainment shares.

“My decision to stand down from my role at Nine is a deeply personal one and a time when I have had to put my family before my career,” Mr Koppelman said at the time of his resignation.

The Melbourne-based executive also cited COVID travel restrictions which prevented him attending results presentations.

Nine’s securities trading policy does not allow the chief financial officer to buy or sell shares in Nine outside a closed period.

The period runs from the end of December 31 until the end of the trading day on which Nine delivers its half-year financial results, or from the end of June 30 until the end of the trading day on which Nine delivers its annual results. Nine delivered its half-year results on 26 February.

The Australian is not suggesting Mr Koppelman acquired the shares outside the closed trading window.

Paul Koppelman.

When Mr Koppelman joined Nine in September it was a particularly active period for the media company, as it was finalising a takeover of radio network Macquarie Media. Nine, like all media companies, experienced substantial earnings volatility during the COVID pandemic in the first half of the calendar year. It was also a period of intense negotiations with the National Rugby League, which resulted in a discount on broadcast rights, a move that delivered a substantial boost to Nine’s cashflow.

An investigation by The Australian found Mr Koppelman does not appear on Nine’s share registry under his current name and he does not hold shares under previous structures.

However, Mr Koppelman and his partner do appear in other share registries where they hold or have held securities.

Mr Koppelman declined to comment on why he did not appear in the Nine registry despite being listed in Nine’s financial report.

Mr Koppelman held 690,000 shares in Medibank Private while he was chief financial officer of the health insurer. However, registry records show that account went to zero in 2017 after being transferred to a JPMorgan CHESS account.

Nine is only obliged to update the market when directors trade its shares but the chair of the board, Peter Costello, was required to be notified whenever Mr Koppelman traded in Nine shares.

Nine declined to comment when asked whether Mr Koppelman had sought consent to buy the securities.

“We are not making any comment beyond what was said at the time of Paul’s departure,” a Nine spokeswoman said.

Senior Nine board members contacted by The Australian declined to comment on the share holding.

Mr Koppelman, who stood to take home an $850,000 salary, was required to give a six-month period of notice. By resigning from the company effective immediately, Mr Koppelman surrendered all $425,000 of his short term incentives. Mr Koppelman also forfeited 230,978 shares, which were to vest in July 2022.