Australian Wool Innovation under fire over Stuart McCullough appointment

Former wool boss Stuart McCullough was handed a high-powered global posting without proper process, a review has revealed.

Australian Wool Innovation appointed former boss Stuart McCullough to a high-powered overseas posting without an open application process or formally recording approval for the role.

That’s according to an explosive document that has accused the wool grower research and development organisation, which collected $43.756 million in producer levies and $13.931 million in government funding last financial year, of not following proper process.

Mr McCullough was appointed AWI’s chief marketing and innovation officer in October 2021, after serving almost 12 years as its chief executive.

A performance review of AWI by the Australian National Audit Office this week found there were no board resolutions in relation to the job’s creation, its remuneration or appointment process.

“In October 2021, the board’s deliberations and decisions regarding the establishment of a new senior executive role, chief marketing and innovation officer, were not documented in the board’s minutes,” the ANAO report found.

“There are no records of the board’s deliberations or resolutions regarding the establishment of the CMIO role, nor its responsibilities or remuneration package. Nor are there records of the board’s resolutions regarding the appointment of a candidate to the role.”

Australian Wool Innovation chief executive Stuart McCullough.

At the time of the appointment, AWI said Mr McCullough would be “charged with addressing the industry’s greatest challenges, such as the proposed European labelling laws that could severely disadvantage the fibre, as well as maximising the opportunities for wool’s growth as the world comes out of Covid-19 conditions”.

Mr McCullough was originally based in London but now works out of the US in the second of his two-year appointment.

AWI chairman Jock Laurie this week told The Weekly Times the process of appointment was a “very simple discussion the board had” to appoint someone to work in the international space post Covid.

“It needed to happen straight away and Stuart had the ability to do that because he was already doing that in his role as CEO,” Mr Laurie said.

“There are no mysteries here – it is about utilising the skills that we had internally, not spending money going to search for someone because we had someone.”

When questioned whether Mr McCullough’s appointment was a case of “jobs for the boys”, Mr Laurie said it was “all approved at board level”.

“The board unanimously agreed to go down this path,” he said.

Mr Laurie said the board was aware and involved in all discussions about Mr McCullough’s new role.

Where AWI fell down was in the official recording, he said.

“Rather than make an official minute on the record, I did not do that and that was my mistake and I freely admit I stuffed that up,” Mr Laurie said.

ANSO recommended that “Recording formal minutes of deliberations and decisions of the board during ‘board only sessions’ and for deliberations via email and other mediums, will provide a more complete and accurate record of the proceedings and resolutions of directors and support compliance with section 55-5 of the Australian Charities and Not-for-profits Commission Act 2012”.

Mr McCullough’s appointment is for two years and Mr Laurie said current chief executive John Roberts would then determine if there were an extension of the role or another role for Mr McCullough.

Mr Laurie declined to disclose Mr McCullough’s salary but said it was “a reduction in his remuneration” compared to his pay as chief executive.