For all the platitudes about Australia’s tall poppy culture, the country’s corporate sphere is starting to look more like a second-chance saloon.
Vik Bansal, a former boss of waste management business Cleanaway who departed in 2021 after bullying allegations and a review that found he had engaged in “overly assertive behaviour”, is now on several prestigious corporate boards. John Cheston, the global chief executive of jewellery chain Lovisa , faced allegations of “serious misconduct” from his previous employer, Smiggle, on the way out the door. He’s called those “false” and “vindictive” and doesn’t look to be going anywhere.
Then there’s Anthony Heraghty. Only 13 months ago, Heraghty was sacked from his last job as chief executive of Super Retail Group, which operates Rebel Sport and Supercheap Auto, among other brands. The board had backed Heraghty to the hilt after whistleblowers alleged he had an affair with the company’s HR boss, before in a staggering about-face, conceding “Mr Heraghty’s prior disclosures were not satisfactory.”
Now, Heraghty is the chief executive of appliance retailer Winning Group and staring down a civil claim from the Australian Securities and Investments Commission alleging he misled the Super Retail board and the sharemarket when he denied an affair. His new board – which did not respond to a request for comment – is again reportedly supportive.
The question is: will the market, and the ASX that operates it, adopt the same attitude?
For now, Winning is privately owned. Its namesake founding family and Ellerston Capital, originally established by the Packer family and now a money manager for some of Sydney’s wealthiest clans, are the company’s key shareholders. Alongside John Winning Sr and Jr, Ellerston’s Ashok Jacob and David Keelan sit on the board.
The retailer had planned to list on the ASX this year, before pushing that back to 2027. Set your watches for that wave of scrutiny, because chief executives of publicly listed companies have to be of “good fame and character”. If they aren’t, the ASX can knock them back.
Most directors, the ASX notes, pass that hurdle easily. They just declare they haven’t been found to have engaged in any “fraud, dishonesty, misrepresentation, concealment of material facts or breach of duty” or are subject to any ongoing investigations along those lines. Unless the regulator’s case against Heraghty is dismissed, that declaration won’t be possible.
Still, even if it goes against Heraghty, that isn’t an insurmountable barrier for a listing as Winning’s backers at Ellerston know. Another of the fund manager’s bets, data centre start-up Firmus, was set to go public this month despite its co-founder Oliver Curtis spending a year in prison a decade ago on an insider trading conviction.
Based on the market operator’s guidelines, Curtis had several points in his favour: he was young at the time, the trading happened more than a decade ago, he had expressed some version of contrition and had a spotless record since his release. Then again, other factors pointed the other way: Curtis’ conduct was dishonest, prolonged, came to light only as a result of a former friend’s confession after being caught and resulted in a conviction. He fought the case too.
Only the ASX – which did not elaborate on its guidelines – knows how it would apply those factors in Heraghty’s case, but the Curtis example shows the bourse, which is desperate to host fresh companies, is willing to be lenient. Yet Firmus’ failed float is a cautionary tale too. Investors wouldn’t back the company at the price of $11 a share.
“There is a difference between what a lot of people think [about Heraghty] and what they want to be seen doing,” says one fund manager on condition of anonymity.
From the beginning of 2019, just before Heraghty was appointed, until just before his ousting in 2025, Super Retail stock was up about 200 per cent to just under $18. Plenty of other retailers fared far worse in that period.
“Most of the people who are investors would say I’ll forgive him that and I’ll invest alongside him,” says the fund manager. But that doesn’t mean they will put their money where their mouths are.
“Are people willing to tolerate the scrutiny? There are people who would say: ‘It’s not worth it. There are plenty of other companies I could invest in’.”
Either way, spare a thought for Winning staff. The former chief executive John Winning Jr briefly tried to make holding internal meetings a “fireable offence”, according to a leaked email reported by the Australian Financial Review. Now, they have the Heraghty saga to contend with.
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