So much crazy can be explored on this topic (why isn't it moved to the Playground, mods?)
1. Powerful people with big egos always crave recognition. I'd much rather give this guy a jewelled brooch to wear on fancy occasions, than appoint him to a position where he could become a crony that made decisions not necessarily in the greater public interest.
2. Politicians can absolutely nominate people to this award - it's just disguised. There was a great article in the AFR magazine about it a few years ago. If you have access to Lexis Nexis, you should be able to find it. Basically, the premier of your state gets to give a yes/no to anyone up for an AO or AC.
3. People used to get awards when they held certain jobs but that's because they were compensation for a life of public service that meant they had chosen to forego financial reward. But these days everyone's agile, everyone "consults" and makes a motza after they leave public life - no one misses out on the big bucks if you're at the pointy end.
4. Today's list shows you can totally game the system. Look how many academics in today's QB list - it seems like half of the AOs and ACs are professors of this and that. Their work is great, but it shows you how they nominate each other and game it for each other. The AFR article I refer to spelled all this out. If you're someone who has access to the Chairman's lounge, and you want the gold lapel badge and the fancy insignia for black tie dinners, you can hire a PR agency to handle the paperwork and secure your appointment to a few boards to broaden your application for a gong.
5. Knights and dames were mocked by some, but add some traditional style to it all. At least people understand the award. Does anyone really understand the difference between an OAM or an AM? You have to double-take to work out the difference, frankly.
In another life, I saw a lot of the nominations for these, and I knew a lot of people that wore the dicky gold lapel badges. The thing makes me laugh. If offered one, I'd decline. But I don't begrudge Joyce - I'd just prefer he got his after he'd finished as CEO, rather than during.