For once, Chris Cuffe is happy to make headlines. The star money manager -- labeled greedy when he famously took one of Australia's biggest corporate payouts a few years ago -- is now making news for his decision to leave his high-paying job for a position with the Australian arm of Opportunity International, a not-for-profit, U.S.-based organization that specializes in microloans in the world's poorest regions.
Cuffe last made headlines in 2002, when he left Colonial First State -- the A$70 billion ($40 billion) fund he had sold to Commonwealth Bank two years before -- with a A$30 million payment, mostly in deferred bonuses. The windfall pay agreement was treated as a scandal in the egalitarian-minded Australian press.
The media took more kindly to Cuffe's announcement that he will step down at the end of June from his current job heading Challenger Wealth Management for the Packer family, Australia's richest, to work for an organization where the average loan size is about $100.
Cuffe, 46, contends that he was not looking for a reason to leave Challenger. "Kick-starting things is my forte. There wasn't much there when I joined three years ago, and now it has A$12 billion under management and it's profitable." The decision to change direction, he adds, was a personal one: "I am at the stage where I want to move from success to significance and relevance. This was not about some sweet words to make the press release sound nice. It's genuine."
Shortly after announcing his resignation, Cuffe spoke with Institutional Investor Contributor Giles Parkinson in Sydney.
Institutional Investor: How did you get involved with Opportunity International Australia, and what triggered your decision to sign on?
Cuffe: Soon after the Asian tsunami [in December 2004], I heard their CEO, Paul Peters, give a speech. I approached Paul to tell him that if there was anything going, I'd be interested to have a look.
I was starting to think seriously about what was the next stop in life, so I went on a field trip to see microfinance in action. I'd heard the theory, but to see the reality of it all, to get up close and personal, to talk to people and see how it virtually transformed their lives overnight.
Can you give us any examples of what you saw?
I saw fruit market people, flower stalls, butchers and bakers. I had a good chat with a butcher in India. A microfinance loan enabled him to put new staff on and helped him double his family's income. I talked to a baker in the Philippines. The loan allowed him to buy a bigger oven, increase production, employ more staff and lift his income. It's a consistent story.
What will your role be?
My responsibility is to help allocate the funds raised and help keep an eye on the partners we have in various countries who make the individual loans. I'll also help manage the relationships we have with other organizations and help with general public awareness.
In that case, having a profile could prove useful? It's not something you've always welcomed.
I certainly don't welcome it. I'm genuinely a private person, but if I have to have it, why not use it in a positive way?
What is it about your makeup that makes you want to do this?
I have a genuine interest in world affairs and a genuine concern about the divide between rich and poor. People know that I am a doer. If you have things on your mind and you have the resources to help in terms of knowledge and time, just get on with it.
What questions do people need to ask themselves before making such a move?
That's a hard one. Someone said to me, "Why don't you work in town, make lots of money and send donations?" But I want to use my skills and my intellect. I guess people need to ask if the skills they have are applicable. There's nothing wrong with just giving money.
