FMG’s corporate governance is ‘super tight’, Forrest declares, amid scandals engulfing MinRes and Wisetech

The billionaire founder of Fortescue is confident his company will not suffer the same fate as two other ASX-listed giants that have been dragged into controversy by their mega-rich founders. Andrew Forrest, Fortescue’s executive chairman, founder, and largest shareholder, was grilled about the adequacy of his company’s corporate governance procedures on Wednesday. It comes as Mineral Resources managing director Chris Ellison and Wisetech chief executive Richard White — both founders and major shareholders of their respective ASX-listed businesses — have been in hot water recently for alleged misuse of company resources. Both bosses will lose their leadership positions for the indiscretions. Mr Forrest frequently uses a private jet owned by Fortescue, but claimed the arrangement is all above board. “It (the jet arrangement) was set up years and years ago under a very tight chairman called Herb Elliot, and we obey the strictures of that governance to the letter,” he told media after Fortescue’s annual general meeting in Perth. Mr Forrest also pointed out that he does not earn a cent in remuneration, with the earnings he extracts from Fortescue coming solely from the dividend cheques he receives via his large shareholding in the company. “I don’t know if you’ve seen my pay packet recently, but it’s exorbitant, and I’m just loading myself up with options and shares and bonus and pay rises,” he said sarcastically. “Our governance is so tight — you’ve seen on that board, the diversity on that board, the majority of non-executives, we run a very tight ship . . . super tight.”