NAB made a similar mistake with Fahour’s generous pay packet in 2004, which former NAB CEO Nobby Clarke famously called out at that year’s NAB AGM. Latitude’s current owners — KKR, Varde Partners and Deutsche Bank — are offering the business to local investors at a share price range of $2 to $2.25. Fran Kelly, Radio National Breakfast host, $255,000 IMPORTANT: This information is general financial product advice only and you should consider the relevant product disclosure statement (PDS) or seek professional advice before making any investment decision. The 2017 Crikeys: the best and worst of Aussie business. We look forward to helping you on your financial journey. Please enter your password to proceed, You have entered an incorrect email or password. If you were going to consider a risky consumer lending business like Latitude, you wouldn't do it 27 years into Australia's record-breaking economic expansion. Just fill out the fields below and we'll send your friend a link to this article along with a message from you. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance. Sack the people who set the salary of these thieves. We worry that risk management might be less of a focus than it needs to be for a consumer lending business joining the ASX for the first time. The ruthless private equity sector is well known for achieving superior returns. Fee data may not include all costs being charged such as platform and adviser fees. Counterpoints: By its own admission, Latitude has a 'relatively high ratio of legacy infrastructure and systems which carry a risk of suboptimal function or system failure'. Says running Australia Post harder than owning a fish & chip shop. I know there are many corporate know-it-alls who will just sneer, but fair dinkum, how much does one human really need as a salary. What Fahour should have said was he forced users of the PO to foot the bill for the turnaround in higher charges, poorer services as well as his obscene salary and bonuses. In light of the above admission, this is hardly positive; it suggests Latitude has experienced a long period of underinvestment in IT systems at a time when the industry is evolving faster than ever. Some of the company's divisions - such as insurance - have become victims of regulatory change, while others are under threat. Despite the mild public odium about patently ridiculous CEO remuneration over now 2 decades in Australia at least, these self-important CEO types continue to treat mere salary earners with distain, clearly supported by self-important and often incompetent boards. Counterpoints: Almost 60% of Latitude's gross loan receivables are from instalment products, which mainly represent those 'interest free' offers from retailers such as Harvey Norman. Fahour yesterday confirmed he would step down from his role and used his resignation announcement to take a dig at Hanson, who was vocal in her criticism of his $5.6 million annual salary. Contact us on: [email protected] or call the hotline: +61 (03) 8623 9900. * InvestSMART's capped Management Fee (capped at $451p.a.) This is one of the most egregious examples of wonky numbers we have ever seen in a prospectus. The historical revenue growth between 2017 and 2018 is anaemic, with deep cost cuts mainly responsible for profit growth in 2018. Latitude, then, is not a stock for a conservative investor (that's probably you, whether you're a widow, orphan or otherwise). The mental acuity of Ahmed Fahour exposed. You probably aren't the right type of investor, but, even if you were, this certainly isn't the right time to consider buying. But with the regulatory climate becoming less favourable for intermediary distribution, Latitude faces a tougher sell. Deferring expenses into future periods is a classic private equity tactic; the costs of the technology investment will be ultimately recognised well beyond the forecast period. “You know, what Senator Hanson should really work out: does she have a real issue with how Australia Post is performing or does she have an issue with the colour of my skin or my religion?” he said. Latitude also distributes other products such as personal loans through intermediaries such as brokers. Idiots nonetheless! He's a high profile executive, having run Australia Post and National Australia Bank's Australian operations previously. After Hanson engaged in the slinging match on Twitter, Fahour decided to take another swing during an interview on The Project. Public investors are wary about buying into businesses floated by private equity firms after their experiences with the likes of Myer, Dick Smith and Pacific Brands. Ahmed Fahour quit his role at AusPost after a public outcry, while Ali Fahour is now unemployed and banned from playing football for life. A footnote also discloses that Latitude discontinued personal lending to the highest risk customers in March 2019. There is no mention of Ahmed Fahour under, Just In, Australia or Analysis and Opinion. How many Postal employees could have been employed for that amount of money. Will the Raghead Museum of Victoriastan now have to apply for government funding, as its main source of free money has now flown the coop? Credit: Nine The fees for retailers for purchases over … While the private equity owners are obliged to retain a 54% stake until at least August 2020, we don't imagine they will stick around for long after that.

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