Richard Goyder sets Qantas exit date in 2024

Richard Goyder’s decision to set an exit date comes after pressure from investors for board renewal at Qantas.

Qantas chairman Richard Goyder has bowed to pressure from investors after months of controversy at the airline, announcing he will step down from his role at the end of next year.

Mr Goyder acknowledged there were “significant reputational and customer service issues” facing the company and the board recognised the need for accountability to restore trust.

The announcement came two weeks after Mr Goyder told a Senate inquiry, major investors at Qantas had confidence in him and wanted him to continue in the role following the abrupt departure of CEO Alan Joyce.

It’s now unclear whether he was telling the truth with a spokeswoman for superannuation giant Hesta revealing they had expressed concerns at meetings with the Qantas board and management.

“Unfortunately, the Qantas board’s oversight of ongoing customer issues and its treatment of workers has been significantly destructive to shareholder value and has negatively impacted Hesta members,” said the spokeswoman.

“On executive remuneration, we expressed our concern to the company regarding the quantum of remuneration ($21.4m) paid to former CEO Alan Joyce.”

She said in that context, the announcement Qantas would undergo board renewal was welcome.

“We hope these changes will provide the leadership needed to restore Qantas’ brand reputation and rebuild customer and employee trust,” said the spokeswoman.

Two long-serving directors, Jacqueline Hey and Maxine Brenner will also leave early departing in February, and Michael L’Estrange will retire as planned in November.

It’s understood Ms Hey and Ms Brenner volunteered to go, in recognition of the need for renewal.

The announcement followed crisis after crisis for Qantas, raising questions about the board’s oversight.

There was the decision to unlawfully outsource ground handling operations, the mishandling of Covid travel credits leading to a class-action lawsuit and the alleged sale of tickets on more than 8000 ghost flights.

Mr Goyder also personally approved the sale of 2.5 million shares by then CEO Alan Joyce, five months before he was due to depart Qantas.

Further concerns were raised about high airfares charged by Qantas at a time when operational performance was well below par, and the decision to paint “yes” on aircraft in support of the Prime Minister’s referendum on the Voice to parliament.

On Wednesday the Australian Council of Superannuation Investors and Australian Shareholders Association said the board changes were an important step in rebuilding trust in Qantas.

“Change at the board level is an opportunity to reset and restore confidence in the company, and all eyes will be on the appointment of a new chair to lead the turnaround,” said ACSI executive manager of stewardship Ed John.

“As we saw at the Commonwealth Bank several years ago, a governance reset and the appointment of a high-quality chair with a mandate for change made a significant difference.”

ASA chief executive Rachel Waterhouse said members wanted to hear from Mr Goyder at the upcoming AGM on November 3.

“The Qantas board must take accountability for the governance and oversight of the organisation including service, brand, and reputational issues,” Ms Waterhouse said.

“They were responsible for the oversight of the CEO and risk when baggage handlers were illegally sacked and the ACCC was most probably asking questions about their sales processes.”

Mr Goyder was only re-elected chairman at last year’s Qantas AGM, which gave him another three years in the position.

His departure next November, was expected to provide sufficient time to find a suitable replacement with Qantas sources confirming the airline would look beyond the current board.

However unions condemned his “long farewell” and called for Mr Goyder to leave immediately.

Transport Workers Union national secretary Michael Kaine said the board changes were not genuine renewal but merely a “shuffling of the deck chairs”.

“(Former CEO Alan) Joyce did very little right in his tenure at Qantas, but the one thing he did do was take an early exit and Goyder should follow him. Certainly not to escape accountability for illegal conduct but to pave the way for a reset of Qantas governance,” said Mr Kaine.

“This announcement is an attempt by Goyder to leave in a dignified manner with another year’s pay in his pocket, after presiding over the largest case of illegal sackings in Australian history.”

The Australian Licensed Aircraft Engineers Association expressed similar sentiments, saying “his performance did not warrant a 12-month farewell tour”.

ALAEA federal secretary Steve Purvinas said new CEO Vanessa Hudson was off to a good start and needed a clean slate to work free from the existing chairman.

“Mr Goyder maintains that illegally sacking 1700 employees was a good commercial decision. It would be a good commercial decision for me to rob a bank, but I can’t because it’s illegal,” said Mr Purvinas.

“The man is so out of touch with reality that I don’t know who pulls his pants up in the morning.”

Qantas pilots said they would prefer things moved more quickly but “at least now we are heading in the right direction”.

“The Australian and International Pilots Association has previously stated that the Qantas board needs a reset and we note today’s announcement as the start of that process and hope it will facilitate the renewal of our great airline,” said AIPA president Tony Lucas.

Mr Goyder said in a statement that the board acknowledged the “significant reputational and customer service issues facing the group and recognise that accountability is required to restore trust”.

“I have always sought to act in the best interests of Qantas. Measured and orderly succession at board level will support the important work underway led by Vanessa (Hudson) and her new management team,” he said.

“Fundamentally, the group is in a very strong position to overcome its current challenges and deliver for all its stakeholders in the years ahead.”

At a Senate committee hearing on September 28, Mr Goyder said he had met with about 14 of Qantas’ top 20 major shareholders, and had been informed that he retained their confidence.

“The feedback I got was the continuity of leadership for me as chairman of the board, particularly with a new CEO,” Mr Goyder said.

“I and the rest of the board take our roles very seriously. None of us will put our personal interests ahead of that. While I retain the confidence of shareholders, I will continue to serve.”

Two directors Todd Sampson and Belinda Hutchinson are up for re-election at this year’s AGM, and it was unclear if the board changes announced on Wednesday would be enough to convince shareholders to support them.

Last week, influential proxy adviser ISS recommended Telstra shareholders not to vote for Ms Brenner’s re-election to the board, based on her performance at Qantas.

Qantas shares lifted on the announcement of the board changes, closing up 2.6 per cent at $5.03.

The share price has tracked steadily downwards since Mr Joyce sold the majority of his own shares in early June for $6.75 each.

Originally published as Richard Goyder sets Qantas exit date in 2024