In a recent interview with the Australian Financial Review, Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), warned CEOs embroiled in scandals that their companies will face greater scrutiny, arguing that personal misconduct often signals governance issues.
He criticized directors for underestimating how CEO behavior reflects corporate accountability and weak internal reporting. "I have been very disappointed by the number of matters that have been brought to ASIC's attention, which started with poor personal behavior," Longo said.
ASIC faces pressure to prove its enforcement strength after a Senate report labeled it a "toothless tiger." Longo rejects this claim, citing numerous legal actions against major companies. "We're in court every single day of the week," he asserted. ASIC launched 184 civil proceedings in five years, surpassing Australian Competition and Consumer Commission (ACCC) and Australian Taxation Office (ATO) filings.
Recent scandals include Mineral Resources CEO Chris Ellison's decade-long tax scheme and allegations of misusing company employees. Super Retail Group faces lawsuits from former top lawyers alleging governance failures and CEO Anthony Heraghty's alleged affair. WiseTech founder Richard White resigned after revelations of financial favors to former partners and intimidation claims. Longo stressed that such incidents expose broader cultural and compliance deficiencies within firms.
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