Genesys advisers react angrily to Challenger's hand out of a multi-million dollar bonus to their chief.
A number of Genesys Wealth Advisers member firms are outraged by a multi-million dollar payment to former Challenger financial planning chief Greg Kirk, following the sale of the dealer group to Axa.
Kirk was awarded an aggregated payment of $3 million for his performance during the 2008 financial year, which included "a significant contribution to the sale of the financial planning division", according to Challenger's 2008 annual report.
Kirk's payment for his part in the sale of Genesys has left many of the dealer group's advisers bitter.
"The man did nothing, he is a useless joke. To compound the problem Mr Kirk was negotiating with Axa for the sale of the division via Challenger at the same time he was talking to the member firms about a float," an unnamed Genesys adviser said.
"The sale then excluded member firms from any ongoing income from that sale. We generate the income, he generates nothing. The member firms are really super pissed off. Axa deserves better."
Unconfirmed reports suggest that Genesys director Andrew Creaser was also handed a payment of between $1.5 million to $2 million for his involvement with the dealer group.
News of unrest among Genesys advisers adds strength to rumours of a potential breakaway group.
It is rumoured a number of Genesys' top-tier member firms are planning to jump ship after being solicited by former Genesys adviser Ray Miles.
However, in early August Genesys won a Supreme Court injunction against Miles until September 15, 2009.
Challenger announced the sale of Genesys and the Synergy Capital Management platform on June 4 this year.
Challenger was unavailable for comment before InvestorDaily's deadline.
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