Aussie investors lose $120m but Domain boss not sorry for jumping ship

FORMER Domain chief executive Antony ­Catalano has brushed aside share market losses of more than $120 million following his ­abrupt departure from the property company.

CLUTCHING a coffee at an upmarket Sorrento cafe, former Domain boss Antony ­Catalano brushed aside share market losses of more than $120 million following his ­abrupt departure from the property company.

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Mr Catalano, who the Herald Sun can reveal is walking away from a pot­ential $13 million payday by quitting his post early, refused to apologise to shareholders who have lost big in the furore surrounding his resignation.

Antony Catalano gets his morning coffee. Picture: Nicole Garmston

Antony Catalano gets his morning coffee in Sorrento. Picture: Nicole Garmston

More than $120 million has been wiped from Domain’s value since Mr Catalano quit just two months after the ­company was listed on the stock exchange.

He appeared relaxed as he left the cafe on Wednesday. Asked whether he thought investors deserved an apology, Mr Catalano told the Herald Sun: “Why should I be sorry?”

The 50-year-old, who has eight children from three ­marriages, cited family reasons for quitting.

“See those guys?” he said, opening the back door of his car to reveal several of his young children in booster seats.

“Go away — seriously.”

He then sped away in his luxury black 4WD.

Antony Catalano gets his morning coffee after his shock exit as chief of Domain. Picture: Nicole Garmston

Details have also emerged of the possible $13 million Mr Catalano has forgone by quitting suddenly.

Remuneration details released to the ASX revealed that, late on Tuesday, Domain cancelled the 4.26 million share options Mr Catalano would have received if he had hit targets, such as doubling Domain’s value by June 2021.

Based on Wednesday’s share price, those options would have been worth more than $13 million. The share price on Wednesday rose 3.67 per cent to $3.11. It has now clawed back about $200 million from Monday’s disastrous stockmarket rout, in which shares plummeted 17.2 per cent to $2.75.

Fairfax chief executive Greg Hywood. Picture: AAP

Shares are still down more than 15 per cent, or $300 million, on the value the company had when it was spun off from Fairfax eight weeks ago.

On Wednesday, Fairfax Media, which holds 60 per cent of ­Domain shares, was still down $90 million from Monday — at 68c.

A source who knows both men said there had been no split between Fairfax chief Greg Hywood and Mr Catalano despite the sudden exit.

They had been friends for more than 15 years and their sons ran a business together.

“This is business, mate, friendship doesn’t come into it,” the source said.

It was left to Domain chairman Nick Falloon to calm anxious investors following Mr Catalano’s shock resignation.

Mr Falloon, now executive chairman of Domain as well as chairman of Fairfax, hit the phones to investors, declaring “we have a deep bench of executives built up over the years”, according to one investor speaking on condition of anonymity.

Experienced Domain executives include chief financial officer Rob Doyle, chief editorial & marketing officer Melina Cruickshank, chief operating officer Graeme Plowman, chief commercial officer Tony Blamey, and group director Simon Kent.

Domain chairman Nick Falloon hit the phones to investors, declaring “we have a deep bench of executives built up over the years”. Picture: Aaron Francis/The Australian

A “highly active” Mr Falloon told investors the core leadership team felt “relaxed” about Mr Catalano’s exit, and would not need a new strategic direction. “It was business as usual, and for Domain, business is booming,” he said.

Analysts are worried any loss of Mr Catalano’s deep relationships with agents posed a risk to Domain.

All five leaders are said to be in the mix to succeed Mr Catalano if the company appoints an internal candidate to the top job.

Mr Catalano parted company with Domain for “family reasons”, Mr Falloon said, amid fervent speculation in media and real estate circles that other reasons were behind the surprise news.

Mr Catalano has said it became “apparent that I needed to relocate to Sydney and that was something I wouldn’t ask my family to do”.

Mr Falloon told investors trading was in line with expectations, as disclosed to the ASX in a recent statement, with guidance for the half year unchanged.

He has received expressions of interest from corporate head hunters and is said to be close to appointing a firm to lead a domestic and international search.

— with David Davidson, The Australian media editor

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