Nine board set for ‘refresh’ as Mike Sneesby faces staff revolt this week
Nine Entertainment’s board is set for a “refresh” after months of turmoil at the media company.
Nine Entertainment’s board is set for a “refresh” after months of turmoil at the media company, which has been beset by serious allegations of misconduct, widespread job cuts, the resignation of its chair and high-profile news boss and a sluggish share price.
The six-person board, chaired by Catherine West — following the abrupt exit of Peter Costello last month —, has set up a nomination committee to start the formal recruitment process to find a new board member, possibly two.
Sources told The Australian Nine is firmly focused on “refreshing” the board, in limbo since Mr Costello’s departure, which was triggered by an incident at Canberra Airport where he forcibly barged into Liam Mendes, a reporter from The Australian who was asking him questions about the state of the media organisation.
It’s understood the six remaining board members are still in shock over the way the former federal Coalition treasurer ended his tenure at Nine seven weeks ago.
Mr Costello’s dramatic exit complicated matters for the board, as Nine chief executive Mike Sneesby was under intense pressure to save his job at the time the chair tendered his resignation.
“Costello’s unexpected departure offered Mike a stay of execution,” one well-placed insider said.
“But, even so, some of his decisions since Costello left — running with the Olympic torch in Paris, for example, at a time when staff are angry about job cuts and so on — have been questionable.”
Three board members are in Paris for the Olympic Games — Nine has the Australian broadcasting rights — including Mr Sneesby, Ms West and Mandy Pattinson.
One source told The Australian Ms West has been “surprisingly hands-on” since assuming the role of chair last month.
All board directors at Nine are subject to re-election at least every three years.
The board includes former Fairfax board member Mickie Rosen, who has held her position since 2018 when Nine and Fairfax merged.
Fellow board member Samantha Lewis has also held her role since 2018, while WIN Corporation chief executive officer Andrew Lancaster is also a director and was appointed in 2021.
Mr Lancaster represents the interests of veteran media tycoon Bruce Gordon, 95, who increased his share in Nine to 25.1 per cent last month.
Nine’s share price also remains a serious concern to the board.
It closed at $1.38 per share on Friday, down 35 per cent compared to 12 months ago, when shares were going for $2.15 per share.
While Mr Sneesby’s reign as CEO remains on shaky ground, insiders said Nine’s immediate focus is on the completion of the external independent review set up following the exit of news boss Darren Wick after a formal complaint was made against him and resulted in him leaving the business in March.
Several harassment allegations have since been levelled against Mr Wick, and Mr Sneesby’s early handling of the crisis was seen by some to be lacking.
Mr Sneesby is expected to arrive back in Sydney on Tuesday following his stint in Paris, and he will attempt to quell the latest internal problem: the fallout from the damaging industrial action taken by unionised staff in the publishing division, which encompasses The Age, The Sydney Morning Herald, The Australian Financial Review, the Brisbane Times and WAtoday newspapers.
The five-day strike is scheduled to end on Wednesday.
The Age’s state political reporter, Broede Carmody, who addressed media when staff walked off the job in Melbourne on Friday, said Mr Sneesby and other executives should forgo their bonuses for the 2023-24 and 2024-25 financial years and put a better pay offer for staff on the table.
“It’s pretty clear that he (Sneesby) is the one who approved a $1m payout for an alleged sex pest (Wick), he’s the one who is allowing television personalities with nothing to do with the Olympics to go to Paris and stay in luxury hotels,” Carmody said.
Mr Sneesby will deliver Nine’s annual results on August 28.
More Coverage
Plan for booze ad blitz on TV leaves bad taste
A draft TV code that would allow 800 extra hours of alcohol ads – including when children are watching – is facing surprising opposition from the alcohol industry.
Rowland slams Meta, backs news outlets
Communications Minister Michelle Rowland says the need for trusted information has ‘never been more important’, after Meta axed independent fact-checking.