Whilst Kelaher may have "only" made some poor judgement calls around the details of a minor administrative matter, failed to address APRA's concerns, and performed poorly in front of the RC, he has undeniably overseen a massive destruction of shareholder value. CEO's are happy to take the big bucks and collect bonuses because their job is insecure and they will be held to account for the company's fortunes. The BOD doesn't need legal proof of misconduct by the CEO, just to establish that it is no longer in shareholder's interests to continue supporting Kelaher.
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