Challenger's shareholders do not require an apology despite having to fork out millions for the early departure of chief executive Mike Tilley, according to Challenger Financial Services chairman Peter Polson.
"I don't think shareholders need an apology," Polson said in a conference call yesterday.
Tilley announced yesterday he would step down on August 31, and deputy managing director Dominic Stevens would replace him - after Challenger posted its first loss in five years.
Challenger reported a net loss of $44.2 million for the year compared with a net income of $255 million 12 months ago.
Tilley, who has announced his departure less than 12 months into his contract, was paid $8.1 million in 2008 and nearly $5 million in 2007, according to the company's remuneration statement.
Polson denied that Tilley's appointment was a mistake.
"I actually think Challenger has benefited from the relationship we have had with [Tilley]...we think he's done a great job," he said.
Polson and Stevens received a grilling from reporters when they defended Tilley for not attending the conference call.
"This is not a forum of accountability. This is a forum for us to answer your questions regarding the performance of the company over the last 12 months and give you an idea of where we are going in the next 12 months." Polson said.
