Corporate Australia has built a reputation for offering second chances to executives who depart under a cloud, a trend on display in the careers of Vik Bansal, John Cheston and Anthony Heraghty.
Bansal, who left waste management company Cleanaway in 2021 after a review found he had engaged in "overly assertive behaviour", now sits on several prestigious corporate boards. Cheston, global chief executive of jewellery chain Lovisa, faced allegations of "serious misconduct" from former employer Smiggle, which he has called "false" and "vindictive".
The most prominent case involves Heraghty. He was sacked as chief executive of Super Retail Group, owner of Rebel Sport and Supercheap Auto, 13 months ago. The board initially backed him after whistleblowers alleged he had an affair with the company's HR boss, before conceding his "prior disclosures were not satisfactory". He is now chief executive of Winning Group and facing a civil claim from the Australian Securities and Investments Commission alleging he misled the Super Retail board and the sharemarket when he denied the affair.
Winning Group is privately owned, with the Winning family and Ellerston Capital, a money manager linked to the Packer family, as key shareholders. The retailer had planned to list on the ASX this year but pushed the float back to 2027.
That listing will draw scrutiny because ASX guidelines require chief executives of listed companies to be of "good fame and character". Applicants must declare they have not been found to have engaged in "fraud, dishonesty, misrepresentation, concealment of material facts or breach of duty" or be subject to ongoing investigations of that kind. Unless the ASIC case against Heraghty is dismissed, that declaration would not be possible.
However, the ASX has shown leniency before. Another Ellerston-backed company, data centre start-up Firmus, attempted to float this month despite co-founder Oliver Curtis serving a prison sentence a decade ago for insider trading. That float failed after investors refused to back the company at $11 a share.
Investors are split on Heraghty. "There is a difference between what a lot of people think [about Heraghty] and what they want to be seen doing," one fund manager said, speaking anonymously. "Most of the people who are investors would say I'll forgive him that and I'll invest alongside him." But others may stay away. "Are people willing to tolerate the scrutiny? There are people who would say: 'It's not worth it. There are plenty of other companies I could invest in'."
Winning Group's board is reportedly supportive of Heraghty. The company's staff, meanwhile, have already had to deal with a leaked email in which former chief executive John Winning Jr briefly tried to make holding internal meetings a "fireable offence". Now they have the Heraghty saga to contend with.