The managing director of Steadfast Group Ltd (ASX: SDF) Robert Kelly has stepped aside on a temporary basis while an investigation into a workplace complaint against him is carried out.
Steadfast shares were placed in a trading halt on Thursday with the company saying at the time the halt was necessary, "as Steadfast investigates a workplace complaint against a senior executive".
Mr Kelly was not named initially.
The company then issued a follow up statement to the ASX late on Thursday, saying Mr Kelly, "has chosen to stand aside on a temporary basis to enable an external investigation to progress into a workplace complaint made against him''.
Steadfast said Mr Kelly would remain on full pay while the investigation was completed.
The company added:
Given that the investigation into the allegations against Mr Kelly AM is ongoing, and that no allegations against him have been substantiated, it would not be appropriate to comment further at this time.
The board has appointed Tim Mathieson to the role of acting chief executive officer "effective immediately and (he) will continue in that role until the conclusion of the investigation".
Image source: Getty Images
Annual meeting scheduled today
Steadfast is scheduled to hold its annual general meeting this morning, Friday 31 October, where two equity grants to Mr Kelly, and the approval of benefits should he leave the company are due to be voted on.
The notes to that resolution say that Mr Kelly, who is 78 years old, "has confirmed his intention to remain as managing director and CEO of Steadfast until at least 31 December 2026''.
The notes to the resolution also indicate that the termination benefits discussed are limited to circumstances where Mr Kelly leaves in the case of issues such as genuine retirement or redundancy and "do not involve poor performance''.
Steadfast Group shares last changed hands at $6.20, valuing the insurance brokerage company at $6.89 billion.
Company performing well
The company in August reported underlying revenue of $1.83 billion, up 8.9%, and underlying net profit of $295.5 million, up 17.2%.
A recent ASX release from the company indicated that Mr Kelly owns 3.1 million Steadfast shares, worth $19.1 million at the current share price, and another 119,086 deferred equity awards, "vesting of which is subject to the terms and conditions of the relevant incentive scheme plans''.
The company in August released guidance for the current financial year, saying it expected underlying net profit to come in at $315 to $325 million, based on achieving a 3% to 5% increase in the pricing of insurance premiums in Australia.
