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After nine years on the board and $2.2m in payments, what has Todd Sampson done for Qantas?

As the longest-serving member of the Qantas board, Todd Sampson has been in the firing line over his contribution to the airline but is the criticism deserved?

Todd Sampson's Life On The Line- Trailer

He’s the longest-serving board member with Qantas and perhaps the most controversial.

Former advertising agency chief executive and television presenter Todd Sampson is in his 10th year on the airline’s board – a position that has earned him more than $2.2m – after narrowly surviving a push to oust him at last year’s AGM.

Appointed in early 2015, the Canadian-born Australian had just finished up as CEO of Leo Burnett where he was credited with establishing a “people first culture”.

At the time, Qantas chairman Leigh Clifford said Sampson’s appointment would provide “board level marketing expertise for one of Australia’s most enduring and recognised brands”.

“Todd will bring a wealth of marketing experience to the Qantas board, as well as business acumen from the senior leadership and strategy roles he has held,” Mr Clifford said on January 9, 2015.

He was re-elected in 2017, 2019 and 2021 with more than 98 per cent of shareholders’ votes each time.

But in 2023, with the Qantas brand very much on the nose and several proxy advisory firms recommending against his reappointment, Sampson garnered only 66 per cent of votes.

Ownership Matters told shareholders Sampson had heightened responsibility for Qantas’ reputational issues, and the Australian Council of Superannuation Investors took a similar line.

ACSI chief executive Louise Davidson said it was felt Sampson should go “based on the fact he’s a long-serving director and has a particular responsibility for the brand on the board”.

Many rightly questioned what he was doing when the brand was crumbling: the Qantas annual report showed Sampson attended all 12 board meetings in the 2023 financial year, 11 of the 12 in 2022, 12 out of 13 in 2021 and all 20 in 2020.

It was during those years that a number of decisions were made which ultimately hurt the brand, from the illegal outsourcing of ground handling operations and extensive cost cuts to the way Covid-19 travel credits were managed.

Todd Sampson at the Qantas AGM where he was narrowly re-elected despite a push by several investor groups to oust him. Picture: Luis Ascui
Todd Sampson at the Qantas AGM where he was narrowly re-elected despite a push by several investor groups to oust him. Picture: Luis Ascui

A former executive who worked closely with Sampson at the time, said he was a good “sense check” throughout that period, particularly on the advertising being done, and the promotion of Covid-19 jabs – with Qantas actively rewarding frequent flyers who uploaded their vaccination certificate.

“He added a different dimension and what you want on a board is people coming from different directions,” said the former executive, who did not want to be named.

“Todd was really good on the customer, distribution and disruption – how Google and other people could disrupt the aviation industry. He added quite forcefully to those debates.

“I know he’s copped a lot of criticism but I think he added a lot of value.”

A former Qantas manager, who was required to make presentations to the board, was not so complimentary, saying Sampson’s contributions seemed to be limited to personal anecdotes.

“I find it hilarious he sits there on the Gruen panel as some great expert in marketing when everyone knows he oversaw one of the biggest declines in brand value in Australian marketing history,” he said.

Sampson declined to comment for the purpose of this article, but those close to him, including fellow Gruen panellist Dee Madigan, said it was unfair for him to take all the blame.

Another close associate, who spoke on the condition of anonymity, said his treatment showed a lack of understanding about the job of director.

“He’s not an executive, he’s not working 10, 12 hour days at Qantas in the marketing department,” the associate said.

“He is a member of the board which meets maybe once a month or less.”

Madigan agreed the “incredibly bright” Sampson had been “unfairly maligned”.

“I think people love to hate on someone and I think he’s copped it completely unfairly compared to other people who should’ve had much more of a say in it, including the people employed within Qantas to look after the brand. That was literally their job, not a board member’s job,” she said.

Todd Sampson’s most recent television show, Mirror Mirror, examined the wellness industry.
Todd Sampson’s most recent television show, Mirror Mirror, examined the wellness industry.

Australian Institute of Company Directors managing director and chief executive Mark Rigotti would not comment specifically on Sampson’s performance, but said “over time expectations on directors had become unrealistic with the increasing heavy compliance burden bogging boards down”.

“The primary role of the board is to oversee, support and constructively challenge the management team; they shouldn’t be involved in the day-to-day running of the business,” Mr Rigotti said.

“Part of a director’s job is to offer an outside-in perspective, informed by their experience with other companies.”

He said directors and management should always be held to account for their distinct roles.

“Directors must be vigilant in their risk management role and challenge management constructively particularly when red flags are raised,” said Mr Rigotti.

Since the disastrous AGM in November during which the remuneration report was voted down and outgoing chairman Richard Goyder ordered a shareholder’s microphone to be turned off, Sampson had maintained a relatively low profile.

He was not believed to have directly had a hand in Qantas’ recent lift in the airline’s reputation score – from 52 last year to 67 – which was attributed to an improved on-time performance and the approach being taken by new CEO Vanessa Hudson.

Certainly the groups that recommended Sampson be ousted from the board were not yet convinced of his value.

The jury is still out at Ownership Matters and the Future Fund, while ACSI suggested it was a tricky situation when “longstanding board members” who presided over the governance and cultural issues at Qantas, remained in place.

“Investors see new chair John Mullen playing an important role as a new broom who can oversee Qantas’ governance reset,” ACSI executive manager of stewardship Ed John said.

“It is critical that the recent (corporate governance) review is not seen as ‘job done’ but part of a long-term plan to rebuild the company’s reputation.”

Read related topics:Qantas

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Original URL: https://www.theaustralian.com.au/business/aviation/after-9-years-on-the-board-and-22m-in-payments-what-has-todd-sampson-done-for-qantas/news-story/f9fb3c1a915abc9eb1bfa3991201e02d