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Mortgage Choice CEO resigns

by Reporter6 minute read
The Adviser

Mortgage Choice has announced that its CEO, John Flavell, has resigned, effective immediately.

The brokerage group announced today (3 April) that, effective immediately, John Flavell has resigned as CEO, with former chief financial officer Susan Mitchell taking his place at the helm.

The company said that Mr Flavell has been very effective in strengthening and growing the business over the past three years and had “always conducted himself and led the business in a professional and exemplary manner”.

Mr Flavell, who had formerly been the executive general manager, wealth advice at National Australia Bank's MLC business, had held the role of CEO for three years (since April 2015). He had also held senior roles at Aussie Home Loans and RAMS Home Loans.

Ms Mitchell will now take over as CEO for the next three years (unless extended or terminated prior by either party).

The move comes as a surprise, given that equity-based risk management, advice and solutions provider, AUB Group, had already announced that Ms Mitchell would join the company as chief financial officer in June.

Mortgage Choice chairman Vicki Allen commented: “We thank John for his leadership and efforts at Mortgage Choice during his tenure as CEO and wish him well in his future endeavours.”

The company added that Ms Mitchell’s extensive experience and experience within the company as CFO means she is “very well placed to step into the CEO position”.

Ms Allen said: “We are delighted Susan has reconsidered her recently announced intention to pursue another opportunity and instead lead our business. The board has confidence that she has the necessary skills to lead Mortgage Choice.

“She is a very talented executive and her in-depth experience with the company will ensure a smooth transition of leadership.”

With over 20 years' financial services experience, Ms Mitchell previously held senior finance roles with Credit Suisse (London), Bear Stearns (US) and ABN Amro and Seiza Capital in Australia before joining Mortgage Choice in February 2009. 

In her new role as CEO she will receive a base salary of $550,000 and will be awarded a one-off grant of 90,000 share rights. She may also be eligible to receive an annual short-term incentive with a maximum value of $440,000 and a long-term incentive of up to $275,000, subject to satisfaction of performance criteria determined by the board.

[Related:  Mortgage Choice reports 6% fall in broker settlements]

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Comments (19)

  • The company is littered with the corpses of failed executives. The bottom line is that if your thinking is not aligned with the board you come of second best. Also the model they work with is well over 20 years old and the market has moved on in terms of marketing, leads and how to run an operation.
    0
  • So John Flavell has gone, that's good news for some, but the payment model is still up in arms & doesn't look like being resolved in favour of the franchisees. So the way i see it, the only person that came out of this "on top" is Suzanne Mitchell. Don't tell me she's the only one that will be getting a pay rise. I can see a mass exodus of Franchisees coming soon.
    3
  • MC Broker - Resigned???? He hi Monday, 09 April 2018
    Sigh of relief wrote:
    Hopefully new CEO can fix this mess of a franchise model
    1
  • I feel sorry for all Mortgage Choice franchise holders as I highly doubt their situations are going to change for the better, just look at the pay package:
    "CEO she will receive a base salary of $550,000 and will be awarded a one-off grant of 90,000 share rights. She may also be eligible to receive an annual short-term incentive with a maximum value of $440,000 and a long-term incentive of up to $275,000, subject to satisfaction of performance criteria determined by the board."
    Malcolm Turnbull earns $527,852
    The biggest issue is that Ms Mitchell is subject to 'satisfaction of performance criteria determined by the board' when the satisfaction performance should clearly be determined by the members, the ones who she is meant to be representing.
    I wish all Mortgage Choice franchisees (fellow Mortgage Brokers) all the best and I hope I am wrong...
    6
  • The franchise model does not work in this business. It has been proven and I spent 10 years locked into one. Stop flogging a dead horse; the only beneficiary of a franchise is the franchisor! Always has been always will.
    2
  • Now for some fresh faces on the MOC board who have been presiding over this mess on their watch for over 10 yrs
    2
  • Interesting that in The Adviser December 24 2014 Mr Flavell stated that he has always dreamed of being the CEO of Mortgage Choice and that "I've been keen on this role for many years" yet less than three years into the role he has resigned. Given this, and the fact that the average tenure of his previous two CEO predecessors was 6 years, it does seem odd that for him "its time to do some other things". I guess Mr Flavell could see the writing on the wall in respect of the plummeting share price he presided over.
    6
  • Hopefully the new CEO can restore the faith of the faithful and provide the leadership needed to steer this great company forward. The future for MC is about growth and market share and you cannot achieve this without franchisees - hopefully the board and management moving forward have learnt from all of this.
    5
  • I have worked under John in a number of different capacities. This is a sad day for Mortgage Choice and indeed the entire industry
    -15
    • No it isn't Young Emma, in fact quite the opposite. He is certainly a highly intelligent man, but he was no friend of the very franchisees who paid his salary, so in fact, it is a very happy day, as growth and prosperity may now again occur.
      8
    • Sorry Emma disagree . Franchisees treated as employees not business partners .MC payment model is a disgrace with a number of Franchisees living on the poverty line
      3
    • I concur others comments - its the best day for Mortgage Choice and all stakeholders. Whilst a charismatic performer on stage leadership fell short. A lesson to be learnt by all in executive management - don't bite the hand that feeds you. Excited about the future - finally !
      5
    • I will reserve judgment until I see what happens. Everyone in the MC network is talking about the poor remuneration splits and the new CEO was the CFO so let's just wait and see what happens. Sometimes the grass is not greener on the other side it's just painted concrete. I also wonder how many are pinning their future on someone else's coattails. If you are not happy very seldom some else brings you long term happiness it usually takes a change from your end.
      PS: No changes at a board level.
      4
    • Young Emma this may be the opportunity for change of the toxic, arrogance and bullying culture at MC.
      4
    • I believe this to be a sarcastic comment, readers. The pun could be lost on some.
      3
  • Isn't it amazing that CEO's and others within an aggregator can earn so much - without ever having written a loan? It's the broker at the coalface, feeding the BDM's, CEO's, franchisors etc. with sheer hard work, long hours, while copping the brunt of baseless accusations of "negative consumer outcomes" from Royal Commissions & Productivity Commissions. Not just MC, but this whole industry needs to re-evaluate itself. I'm not afraid to say, every dollar this industry earns, is generated by the broker.
    16
    • Steve - spot on!! I don't know what the CEOs of aggregators actually do!! most spend time going to PD days and conferences - little on actual growing or knowing what there good brokerage actually do or need!!
      I haven't seen my CEO or State Mgr at all.
      Clearly John Flavell as pushed. Share price rock bottom for starters!!
      7
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