Incumbent Directors Rule – OK
Ron writes: In response to your views on "NRMA Good governance: An Oxymoron" about the organisational power and resources of incumbent Directors. - There is a long history to all of this. As far back as 1992, Sir Laurence Street, who conducted an inquiry into the governance of the NRMA, recommended that the star used to denote incumbent directors should be taken off the ballot paper. The new electoral system now in use by the NRMA still reflects many of the recommendations made by Sir Laurence however the one about removing the star of incumbency has never been implemented. Why?
Chris answered: Possibly because the way to a seat at the NRMA
Boardroom table has always been through the power elite who controlled the
Board at
any given
time in the NRMA’s history. It’s the numbers game again, particularly
in the recent period with a succession of B team players from the big end
of town picking up casual vacancies or invited to stand on the Director’s
ticket.
A quick look at the form of the 70 or so NRMA directors (http://www.crikey.com.au/articles/2003/01/20-nrmaboard.html) in the last 10 years shows shifting power balances and alliances over time. The Directors were invariably well connected, to the land, business, finance or the two party politics at all 3 levels of government. It also helps to have a public persona that covers the State. Sports celebrities are proven past winners.
Candidates are invited onto the incumbent Board team because their
sponsors and backers can trust them to do the right thing. Some are invited
as reward
for loyal service to the lords of the universe. (Not quite the Paris, London
or New York gig but this is after all only the B team.) Many, particularly
in the years since directors fees have become a nice little earner, have
done little more than voted with their faction (often by phone) before their
next
round of golf, or call to their broker or bookie.
Some of the anointed and appointed wannabees have proved to be people of good heart and principle and have attempted to do their best in the interests of the NRMA. A lot have jumped off the Board early, concerned at the effect the NRMA Board shenanigans was having on their public persona and professional reputations. Others have turned feral and bitten the hands of those that sponsored and fed them.
In the past success for the anointed and appointed ones has
largely been guaranteed. The incumbent power group, backed by the substantial
resources
of the organisation
and aided by a state wide voting system for a largely sleepy electorate of
two million, has been able to get easy wins.
Over the years the 'dissidents' (aka
members who have a different view) and other independent candidates have
rarely been able to muster the
issues, strategy and firepower to crack this 'gentlemen's club'.
Occasionally the dissidents have established a bridgehead but never with
sufficient unified numbers to become the dominant faction. It appears they
came close
enough last time around to trigger the presidential coup by Chairman’s
proxy.
Now the election rules have changed. The nine regional electorates have been
set up to "to avoid cliques dominating the Board and to ensure maximum
democracy in elections." according to President Allan Evans in his opening
salvo of the campaign in August (on
Crikey).
The Board team for this election
has seen the emergence of a different power grouping looking to retain power
under the new rules. Some of them came in
with the Turnbull coup and are architects of the new Constitution. Advised
by some of the best spin doctors and legal counsel around and aided and abetted
by the NRMA’s legal, public relations and marketing departments, these
Directors spent many millions (of members money) to create and sell a new
world order which would cement the hold of the incumbent directors and senior
executive
team over the organisation.
In this endeavour the Board appeared unified but I think they are now having second thoughts about what they have created. Suddenly the power of incumbency is looking much more vulnerable. Instead of having to reach 2 million potential voters (which they have the resources to do) the electorates are now only 200,000 or so. Members with very limited resources but who have some regional standing or networks are now in with a bit of a chance. With only about 10% voting in elections and with the right sort of preference deals in place, a winning primary vote could be as little as 6,000 votes.
No wonder the Company spin doctors
devised the strategy of offering a car as way to try and get the donkey vote
out for the incumbent directors.
Who are they? You know, the ones with their pictures in The Open Road and
in the media releases. You don’t remember them? Just look for the ones
with a star against their name on the ballot paper.
Some things never seem to change or will they?