With Peter Costello gone, heat is now on Nine CEO Mike Sneesby

Staff at Nine were ‘cheering’ after the exit of chairman Peter Costello but the pressure remains on CEO Mike Sneesby as the company deals with serious cultural issues.

Former Nine Entertainment Chair Peter Costello with chief executive Mike Sneesby in 2021. Picture: Britta Campion

Nine Entertainment’s management team has declined to confirm whether they publicly back chief executive Mike Sneesby as the company tries desperately to move on after the departure of long-serving chair Peter Costello following the airport fracas.

The 10 managers who work under Mr Sneesby were all contacted by The Australian on Monday to ask if they support him – not one of them responded.

A Nine spokeswoman said: “We won’t be commenting on this.”

The unrest at Nine is far from over and insiders told The Australian employees were “cheering” and “happy” after the announcement came that Mr Costello had resigned on Sunday.

“Management behave poorly and get away with it all the time,” the insider said.

Newly appointed chair Catherine West – who was previously deputy chair under Mr Costello – was not doing any interviews on Monday but has a huge task ahead to rebuild the media company’s damaged reputation after allegations of sexual harassment and bullying emerged following the exit of longstanding news boss Darren Wick.

Sources told The Australian Mr Sneesby remained under immense pressure particularly as the TV network awaits the outcome of the independent review into harassment and bullying among staff at the company.

In an email to staff on Sunday he said Mr Costello’s resignation “gives the board and executive team stability to get on with the important work we are doing to build a culture of respect and trust at Nine”.

“I can’t stress enough that Nine’s board and management are united in focusing on the wellbeing of our people in all parts of the business.”

On Monday, some of Nine’s highest-profile radio talent, including 2GB mornings host Ray Hadley, criticised Mr Costello’s behaviour and said he clearly pushed The Australian’s jour­nalist Liam Mendes last week at Canberra Airport.

Hadley said there was “no other option” than for Mr Costello to leave the company.

“What he (Costello) did – they’re saying allegedly, but it’s a video so it’s not allegedly, he definitely pushed the bloke even though he denied it, he definitely pushed Liam Mendes,” Hadley said. “As a result the board had no other option.”

3AW radio host Tom Elliott on Monday also lambasted Mr Costello’s conduct.

“It has become clear that he did push the journalist over; now that is bad behaviour,” Elliott said.

“I feel like if he had apologised straight away he’d be OK, but he didn’t.

“You cannot be the chairman of a group like Nine and then behave badly in public like Peter Costello did. Out of this tawdry affair I think Peter Costello has ­finally done the right thing.”

Nine’s own masthead The Sydney Morning Herald published an online editorial on Monday afternoon ­titled “Peter Cos­tello had to go. And thank good­ness he has”. It said: “What was rubbish was Costello’s belief that he could hold on to his job.”

The Australian broke the story that a female employee had lodged a complaint against Wick, which resulted in further allegations being aired in the media against the former news executive. In recent weeks, Mr Costello repeatedly avoided responding to questions from the media including whether he still supported Mr Sneesby as CEO.

It wasn’t until he announced his resignation on Sunday that Mr Costello said: “Mr Sneesby has always had my full support.”

In his farewell statement he made no reference to the Canberra Airport incident apart from saying, “The board has been supportive through the events of the last month and last few days in particular.”

When Mr Costello began as chair in March 2016, Nine’s share price was $1.43 – on Friday it closed at $1.40.

Mr Costello’s chairmanship was for a three-year term and to run until October 2026, but he said in his statement he had “flagged retiring from the board some time after the July Olympics and by the AGM in November at (the) latest”.

Within hours of Ms West being appointed chair, she updated her LinkedIn profile. However, on Monday evening Nine was yet to update its online list of board ­directors and still had Mr Costello listed as chair.

Ms West was appointed to the board in 2016 and was appointed deputy chair last year.

She said in a statement on Sunday: “As chairman, (Mr Costello) he has always put the needs of the company first and his decision to stand down and pass on the baton of leading Nine at this time is in line with that approach.”

Originally published as With Peter Costello gone, heat is now on Nine CEO Mike Sneesby