Qantas chairman Richard Goyder right to go, on his terms

Richard Goyder’s departure is a sensible balance of bending into the media-driven hysteria over Qantas and discharging his governance obligations.

Qantas chairman Richard Goyder will step down at the end of next year. Picture: Martin Ollman

Richard Goyder’s departure and board renewal schedule is a sensible balance of bending into the essentially media-driven hysteria over Qantas and discharging his and the board’s governance obligations.

To have immediately followed departed CEO Alan Joyce out the door would not only have been very silly and completely unjustified, but a serious dereliction of his most fundamental duties as a board chairman.

Except in the most extraordinary circumstances – and, despite the hysteria, they have not occurred at Qantas – a chairman and CEO should not change at the same time.

The really interesting question has always been whether it is best for the chairman or the CEO to change over first – especially as CEOs should never be given the power to ‘choose’ their chairmen.

But should a new chairman get to choose his or her CEO? Or an about-to-depart chairman put in place the new CEO; maintaining and building continuity?

With Qantas it was academic. Joyce was always going to go first.

Indeed, he would have gone around 2020 but for Covid. He stayed for Covid. He had to stay for Covid. And, without qualification, he did an outstanding job through Covid and in the aftermath.

It neatly captures the utter inanity of the media hysteria when I keep reading about Joyce’s ‘shock early departure’.

When the only time it would have been a ‘shock’ and ‘early’ would have been in 2018 or before – by when he had already been CEO for ten years.

Yes, in June, he was originally timed to go next month; he - and Qantas – brought that forward two months when the hysteria erupted.

Again, it would have been pointless and just plain silly for him to have hung around; indeed, to have his nominated successor Vanessa Hudson also ‘hanging around’ outside his door so to speak.

He was going – after 15 years as CEO. It made the most basic sense to enable Hudson to draw a line and embark on the huge issues she faced as Qantas CEO.

The biggest are not the ludicrous – again, just plain hysterical – task of ‘winning back customers’. Or are all those full Qantas jets taking off every day just a mirage?

But two real ones.

First, dealing with all the post-Covid legacy issues; with Qantas hit and badly hurt by government stupidity worse than any other airline in the world.

And two, essentially replacing its entire 200-plus fleet over the next decade at a cost north of $20bn.

All this meant, very simply, it became Goyder’s number one job – and fundamental obligation – to support Hudson into her new role and the huge tasks she faces.

Yes, like any chairman of any company with a new CEO.

I nominated 18 months as the minimum. Goyder’s opted for 12, sensibly enabling his successor to be in place for the 2024 AGM.

Along with a structured turnover of most of the board, but crucially not all, over this period as well.

At this AGM Qantas will all but certainly get hit with an – entirely symbolic, and as always, utterly pointless - remuneration report strike. But with directors comfortably re-elected.