Michelle Guthrie considers legal action for her sacking as ABC boss
A “devastated’’ Michelle Guthrie says there was “no justification” for her dismissal and that she is weighing up her legal options.
Michelle Guthrie says there was “no justification” for the ABC board to terminate her employment as managing director and that she is considering legal options.
“I am devastated by the board’s decision to terminate my employment despite no claim of wrongdoing on my part,” Ms Guthrie said in a statement.
“When I joined ABC in 2016, I knew I had an enormous challenge in front of me to break down some of the internal barriers to progress as well as continuing to deliver quality programming for all Australians. In the first two years of my five-year term, I have invested more in investigative journalism; more in regional journalism; more in innovative content; and increased the efficiency and effectiveness of work across the ABC.
“As the first female Managing Director of the ABC, I felt a tremendous responsibility and unique privilege to lead Australia’s most important cultural institution. At all times I have promoted the ABC’s importance to the community, including having to defend and protect the ABC’s independence.
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“The ABC Act fixes the term of appointment of the Managing Director at five years. My term concludes on 4 July 2021. While my contract permits the Board to terminate my appointment without cause and with immediate effect, I believe there is no justification for the Board to trigger that termination clause. I am considering my legal options.
“I wanted to continue the transformation of the ABC and to support the great work of ABC’s dedicated and passionate employees to ensure our continuing trust, quality and distinctiveness as the source of Australian culture, conversations and stories. To me, it is the content produced by the ABC that is of primary importance to Australians, with the technology used to deliver that content a distant second.
“At no point have any issues been raised with me about the transformation being undertaken, the Investing in Audiences strategy and my effectiveness in delivering against that strategy.
“The ABC is a great Australian institution that has the trust and support of the great majority of Australians. I wish everyone at the ABC every success in the future as they continue their mission to keep all Australians informed and entertained.’’
The ABC board announced its decision earlier this morning, bringing the curtain down on Ms Guthrie’s five-year term just before it reached the halfway stage.
Her dismissal comes after months of tension between the managing director and ABC chairman Justin Milne, revealed by The Australian this morning. The pair have clashed over a number of key projects and how to deal with a hostile Coalition government as the ABC gets set to make a case for its next round of three-year funding.
The ABC said in a statement the board decision “follows discussions over several months that concluded when directors resolved that it was not in the best interests of the ABC for Ms Guthrie to continue to lead the organisation”.
Mr Milne said the board believed that new leadership would benefit the organisation, its dedicated employees, and the ABC’s audiences.
Ms Guthrie will be replaced by David Anderson, ABC Director, Entertainment & Specialist, as interim managing director.
“In resolving to seek fresh leadership, the board’s foremost consideration was the long term interests of our own people and the millions of Australians who engage in ABC content every week,” Mr Milne said in his statement.
“This decision has been driven by our commitment to deliver best possible outcomes for our loyal audience and the best possible experience for our own people.
“We understand that transitions can be disruptive in the short term, however the ABC is fortunate to have an experienced and capable executive team that will provide continuity in the months ahead.
“The board wishes to thank Michelle for her contribution to the ABC. We are grateful for her hard work.”
In a later interview with ABC TV, Mr Milne admitted the need for a better relationship with the government was one of the reasons she was sacked effective immediately. But he insists no one from the government put any pressure on the board to sack her just two-and-a-half years into the job.
“The board felt in the end that her leadership style was not the style that we needed going forward. We needed a different leadership style,” Mr Milne said.
“That is possibly an area that could have been better. I think that is fair to say. That said, I think Michelle tried hard and was involved with government. (But) the government, I must say, has provided no pressure, no opinion, has not been involved in this decision. This is entirely a board decision.”
Scott Morrison said Ms Guthrie’s sacking was a matter for the ABC board. “That’s their job to decide how well that show has been run,” the Prime Minister said. “They made a decision about that. It’s for them to go through the process and recommend a new appointment.”
Mr Morrison said he had spoken to Communications Minister Mitch Fifield and been advised of the board’s decision last night. “Let’s not forget, they’re an independent board. It’s their job,” he said. “They would need to have gone through all the proper processes to make the decision they have. I want to see an ABC that’s strong and doing its job and that’s well run. That’s what the board is responsible for.”
The Minister for Communications thanked Ms Guthrie and acknowledged her service as managing director of the ABC “in what is a challenging and rapidly changing media environment’’.
“The ABC board today announced the managing director would be leaving the organisation and recruitment for a successor would begin,” Senator Fifield said.
“ABC managing directors are appointed by the board. The ABC board has legislated independence in relation to management appointments and the Government respects the duty and role of the Board in these matters.’’
Tasmanian Liberal senator Eric Abetz said Ms Guthrie’s sacking required a “full and detailed explanation” from the ABC board.
“I am hopeful that the new managing director will ensure that that the Ultimo-centric broadcaster is more in line with the aspirations of Australians including by delivering benefit to the taxpayer, stopping the left-wing bias and bringing an end to the frolics masquerading as news and ‘comedy’ from some ABC employees,” Senator Abetz said. “I wish Ms Guthrie well for her future.”
ABC staff were informed of the board’s decision in an email this morning. Sally Neighbour, the executive producer of the broadcaster’s flagship current affairs show, Four Corners, greeted the news with a tweet simply stating: “Excellent decision’’.
Excellent decision https://t.co/Xzo14iRDcM
— Sally Neighbour (@neighbour_s) September 24, 2018
Former prime minister Kevin Rudd demanded the government explain why Ms Guthrie had been sacked. “What on earth is the government’s explanation for Michelle Guthrie’s apparent sacking as head of the ABC. The ABC’s future is owned by all Australians,’’ he tweeted.
What on earth is the government’s explanation for Michelle Guthrie’s apparent sacking as head of the ABC. The ABC’s future is owned by all Australians. https://t.co/OrurwOuqDy via @abcnews
— Kevin Rudd (@MrKRudd) September 24, 2018
In a profile in The Weekend Australian Magazine by Meghan Lehmann, soon after taking on the $900,000-a-year job in 2016, Ms Guthrie told an anecdote about the five reasons she should never have been handed the top job at the ABC.
“One: she’s been out of the country for 13 years. Two: she has zero experience in journalism and public broadcasting. Three: she spent 14 years with News Corporation. Four: her most recent job was at tech giant Google. Finally, no woman has held the position in the public broadcaster’s 84-year history,’’ Lehmann wrote.
“It’s a damning inventory. Surprisingly enough, it was compiled by Guthrie herself, and she didn’t keep it in her head either. In what seems a clear case of self-sabotage, the 50-year-old lawyer and media executive presented these five reasons to international head-hunters Egon Zehnder when they came looking for someone to succeed ABC managing director Mark Scott.
“At the end of a successful interview process, she was told that her five objections were the very reasons she was hired.’’
Ms Guthrie began her career in Sydney at Allen, Allen & Hemsley, where she specialised in media and technology law, before moving to London to work as corporate counsel for BSkyB. It was the beginning of a 14-year association with Rupert Murdoch’s global empire. After four years, she returned to Sydney as Foxtel’s director of legal and business development, before moving to Hong Kong where she took over from James Murdoch as chief executive of News Corp’s pay TV business, Star. She resigned from Star in 2007, moving on to become managing director of media-focused private equity firm Providence Equity Partners in Hong Kong.
Interim ABC managing director Mr Anderson, a former head of television, is currently director, entertainment and specialist, responsible for broadcast television networks, radio music networks, podcasts and specialist radio content.
“I recognise the challenges involved in transitions of this kind but I am honoured to accept the Board’s invitation and look forward to working with our outstanding people to execute our strategy,” Mr Anderson said.
The ABC Board said it had commenced a formal search process that will involve internal and external candidates.
“By law, managing directors are selected by the ABC Board independently of the Government and Opposition of the day,” the board said.
ABC MANAGING DIRECTORS
The position of managing director has existed since 1984 after it became the Australian Broadcasting Corporation. Short tenures are not uncommon despite the job having a five-year term.
● Geoffrey Whitehead: January 1984 to December 1986
● David Hill: 1987-February 1995
● Brian Johns: March 1995-March 2000
● Jonathan Shier: March 2000 to December 2001
● Russell Balding: May 2002-March 2006
● Mark Scott: July 2006-April 2016
● Michelle Guthrie: May 2016-September 2018 - AAP
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