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JB Were profit only $10m

19 June 2014 3:52PM
JB Were had "revenue of approximately A$150 million and costs of approximately $140 million in 2013", Paul Heath, a former CEO of JB Were, disclosed in evidence to the Fair Work Commission.JB Were is a wealth advisory business controlled by National Australia Bank and a heritage financial brand that joined the NAB stable only five years ago. It produced losses for NAB in its first year.The FWC considered, and rejected, a redundancy claim by Heath that resulted from a decision by NAB to shift Heath to a new role as EGM Wealth Advice, which he did not want to take.Other financial data on NAB opened up by the case includes commentary that "sophisticated clients were prepared to invest anywhere between $20 million to billions of dollars."The average client in JB Were had about $3 million of investable assets, it was revealed.However, in "Wealth Advice" the average client would have about $350,000 of investable assets.Heath said that JB Were was "a small part of the NAB Wealth business."Among management practices singled out, Heath said he "assessed performance for approximately 100 to 150 senior executives."He also outlined some compliance practices.As a member of the "executive risk audit and client compliance committee", which looked after "each of the business units of NAB Wealth" he said "the committee met for half a day once every three months. "There were at least 30 people in attendance at these committee meetings and included people from audit, legal and risk of NAB Wealth."The management style of NAB executive Andrew Hagger is scrutinised in the FWC decision.Heath said 50 per cent of his time was involved in managing JB Were as a standalone business and for the remaining time "he was involved in leadership functions as a member of the NAB Wealth leadership team".According to Heath: "The regime of the Wealth leadership team under Mr Hagger was different to that under Mr [Steve] Tucker in that Mr Hagger demanded a higher focus by each member on their 'day jobs'. "In contrast, Mr Tucker expected them to delegate more of their duties and focus on their leadership team activities."

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