The board of the embattled accounting organisation CPA Australia has terminated the contract of its high-profile chief executive Alex Malley.

Mr Malley has come under fire for his $1.8 million salary and the CPAs marketing budget under his leadership, much of which was spent on raising his personal profile.

More than half of the CPA’s board has resigned, and the organisation has announced an independent review of its affairs.

CPA Australia says it has been obliged to pay Mr Malley $4.9 million in terminating his contract.

CPA members want a look at the books

CPA chief Alex Malley is under pressure to justify the accountancy body’s promotional budget and how members fees are spent.
Mr Malley will finish as CEO immediately.

CPA’s chief operating officer Adam Awty will be the interim CEO.

In a statement, CPA president and chairman Jim Dickson said Mr Malley’s departure would “allow CPA Australia, CPA Australia staff and Alex to move forward”.

“On behalf of the board, I wish to thank Alex for the significant contribution he has made over the past seven and a half years,” the statement said.

“He has guided CPA Australia through a period of sustained growth. He brought an ambitious vision for our profession and was dedicated to supporting students and young leaders.

“Alex’s legacy is an organisation with a global footprint and an ambitious outlook. We know that he will be very much missed by his colleagues and friends at CPA Australia.”

Salaries based on performance: Malley

Mr Malley’s $1.8 million pay packet was revealed after CPA’s very public spat with angry members over the secrecy that surrounded the remuneration.

Earlier this month Mr Malley defended his position, saying salaries were based on performance.

The professional accreditation body has also faced mounting pressure over its management style, heavy losses of its financial advice start-up and the departure of more than half its board en masse.

Members are also questioning the professional system they are propping up with their expensive fees.

Between 27 and 56 per cent of CPA candidates failed their professional exams in 2016.

Re-enrolments of failed candidates would generate millions each year, industry observers have noted.

CPA’s accreditation exams cost more than $6,000 in total.

The organisation defended is failure rate, saying it was “committed to protecting the integrity of the profession through the maintenance of high standards”.

—ABC