Australia Post CEO Christine Holgate resigns after PM tells her ‘she should go’

Ex-Australia Post boss Christine Holgate is entitled to a payout of more than $700k after resigning – but instead, she’ll walk away with nothing.

Stung by accusations she was handing out Cartier watches at the taxpayers’ expense, Australia Post CEO Christine Holgate has opted to walk away with nothing and forfeit her right to a six-month payout on exit.

Her decision is in stark contrast to her immediate predecessor in the role, who walked away with a whopping $10.79 million for his last year in the job, including three years’ worth of long-term bonuses.

Former Australia Post CEO Ahmed Fahour’s golden handshake in 2017 included $8.7 million worth of bonus payments and superannuation, in addition to his base salary of more than $2 million.

As news.com.au revealed on Friday, Ms Holgate was eligible for a termination payment of six months’ salary worth more than $700,000. Her annual base salary was $1.5 million but she generally earned substantially more with bonuses.

But Australia Post confirmed today she had opted to not claim a cent, with Ms Holgate adding: “I am not seeking any financial compensation.”

Ms Holgate announced her resignation on Monday, just weeks after the Prime Minister bluntly told her if she didn’t wish to stand aside “she should go”.

“I have offered today the Chairman and Board of Australia, with great sadness, my resignation as chief executive with immediate effect,” she said in a statement.

“As Christmas approaches, it is critically important that Australia Post is absolutely focused on supporting our customers and communities.

“We have prepared significantly for this peak, but still face significant challenges — keeping our people safe, managing the biggest e-commerce Christmas ever and planning in the face of unpredictable seasonal weather.

“I firmly believe that the ‘ship’ needs a strong captain at the helm to help navigate through this time.

“The current issue I am managing is a significant distraction and I do not believe it is good for either Australia Post or my personal wellbeing.

“Consequently, I have made the difficult decision to resign, hoping it will allow the organisation to fully focus on serving our customers.”

Ms Holgate said she also now accepted that the Cartier watches did not “pass the pub test”.

“I deeply regret that a decision made two years ago, which was supported by the Chair, to recognise the outstanding work of four employees has caused so much debate and distraction and I appreciate the optics of the gifts involved do not pass the ‘pub test’ for many,” she said.

“I still believe firmly that the people who achieved the Bank@Post outcome for Australia Post deserved recognition, their work secured a $220m investment over the following years, which dramatically improved the financial performance of the company, protected a critical community service which more than 50 per cent of the communities in Australia depend on and made our Community Post Offices sustainable for the long term.”

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Australia Post chief executive Christine Holgate during Senate estimates in Canberra. Picture: NCA NewsWire/Gary Ramage

In a statement, Australia Post Chair Lucio Di Bartolomeo said Ms Holgate would still co-operate with the inquiry into the purchase of the four Cartier watches.

“Ms Holgate has indicated her willingness to participate in the recently announced Shareholder Departments investigation into aspects of Australia Post expenditure,” he said.

“Christine Holgate has held the role of Group Chief Executive Officer and Managing Director since October 2017 and while noting the current Review, I would like to acknowledge and recognise the significant contributions she has made during her tenure.

“The Board is acutely aware of the challenge of the Christmas peak period ahead and Australia Post is working hard to deliver for Christmas 2020.”

In a bombshell statement released by her lawyers last week, Ms Holgate — who was on a $1.5 million a year salary — had revealed her own legal advice suggests there was “no basis” to stand her down.

“Legally, in my opinion there are no grounds for Ms Holgate to be stood down, and ‘optics’ not a legally-valid defence,” the statement from Bryan Belling, partner at employment law firm Kingston Reid said, according to the Sydney Morning Herald.

“Nor has she been informed as to why she should be stood down.”

Previously, the Prime Minister revealed he had demanded she stand aside and “if she doesn’t wish to do that, she can go”.

Last week, Ms Holgate’s millionaire mentor leapt to her defence, saying she has been treated like “a dog” over the Cartier watches scandal and has been “crying for days” according to her millionaire mentor.

Accusing the Prime Minister of needlessly trashing her reputation, Blackmores vitamin empire chief Marcus Blackmore has slammed the treatment of the respected business leader as “disgusting” and over the top.

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Holgate has caused many PR headaches for Australia Post. Picture: Ryan Pierse/Getty Images

“You wouldn’t do this to your dog … she might have been out of line but don’t crucify her, for God’s sake,” Mr Blackmore said.

“I saw what it did to her, she was crying for days, she was devastated. It was awful.”

“It was four watches, for God’s sake. Women like Cartier watches. She likes watches, she wanted to give people something memorable.”

Collingwood Football Club President Eddie McGuire, who has worked with Ms Holgate on the club’s board, said he was left angry and disgusted when he watched the PM’s extraordinary spray in Question Time and he hoped she would “get out” and go back to the private sector.

“I just thought it was a pile on. I don’t know what the background is. But as somebody sitting there watching this, I just thought, ‘Wow. This was a beat up where someone’s getting beaten up. When you’re running things it’s intuitive,’’ he said.

“I think how dumb is Australia? That we still go into the politics of envy? I mean, seriously. Why do we go and get superstar, business people to run public entities, and then try and make them play like dullards.”