When push comes to shove: Nine executives move to oust Peter Costello
The Nine chairman’s position with the media company is ‘simply untenable’ following the former federal treasurer’s physical confrontation with a journalist.
Moves are afoot within Nine Entertainment to oust Peter Costello from the chairmanship of the besieged media company, following the former federal treasurer’s physical confrontation with a journalist at Canberra Airport on Thursday.
Mr Costello, who has been chairman of the Nine board for more than eight years, dug his heels in on Friday, despite overwhelming pressure – from both internal and external forces – for him to step down after the unedifying incident at the airport.
Video footage taken by The Australian’s journalist Liam Mendes on Thursday clearly shows Mr Costello making physical contact with the reporter, who was asking him straightforward questions about the harassment and bullying scandal that has engulfed Nine in recent weeks.
Mendes ended up on the floor after Mr Costello's shove. The journalist was shaken but not seriously hurt, however the altercation left his expensive camera equipment destroyed.
The footage also shows Mr Costello did not offer to help Mendes to his feet.
On Friday, the editor-in-chief of The Weekend Australian, Michelle Gunn, wrote to Mr Costello to request that he, or Nine Entertainment, “pay for the repair or replacement of Mendes’ damaged equipment as well as for an assessment of his other equipment”.
“Video recorded by Mendes clearly captured you quickening your pace then using your body to knock Mendes to the ground, before laughing and walking away. Your behaviour was reprehensible,” Gunn says in the letter.
“While the video speaks for itself, several independent eyewitnesses have given accounts of your actions, including one who characterised your contact with Mendes as ‘a shoulder charge’.”
On Friday, Mr Costello did not respond to questions from The Weekend Australian about his future at Nine.
But it’s understood that senior figures within the company, including several members of the company’s 11-person management team, are openly canvassing strategies to “transition” Mr Costello out of the role of chair, with one executive telling this masthead that “it’s simply untenable” for him to continue to hold the position.
The Weekend Australian understands that others on the management team are deeply frustrated with Mr Costello’s behaviour and lack of leadership.
The depth of the crisis that Nine finds itself in is reflected in its share price, which closed down 2 per cent to $1.40 on Friday – its lowest point in almost four years.
It remains unclear whether Mr Costello retains the full support of the seven-person Nine board, although the majority of the current executive is thought to be longstanding factional allies of his.
Some senior figures within Nine were speculating on Friday that the company wanted to let the discussions over Costello’s future “settle” over the coming long weekend, with the expectation that the matter will come to a head early next week.
On Friday morning, the Nine board’s people and remuneration committee held a meeting, at which it’s understood the matter of Mr Costello’s conduct was raised.
Central to that committee’s role is its responsibility “for corporate governance and oversight of certain human resources policies and practices, and workplace health and safety management”, according to Nine’s charter.
The three board members who sit on the committee – Catherine West, Samantha Lewis and Andrew Lancaster – could not be reached for comment after the meeting.
Channel Nine’s 6pm news bulletin ran the story of Mr Costello's clash with Mendes as its lead item on Friday, reporting that the Nine chairman had “gone bush” after leaving Canberra.
But he left plenty of critics in his wake, with the nation’s largest media union, the Media, Entertainment & Arts Alliance, posting on social media platform X: “As the chair of a major media company that employs hundreds of journalists, Peter Costello should know that a journalist asking him questions is just doing their job, and like any other worker in this country deserves to be treated with respect and to be safe.
“It is extremely disappointing that as the head chair of a media organisation, Mr Costello should appear to have such low regard for the work of journalists, whoever they are employed by.”
As the chair of a major media company that employs hundreds of journalists, Peter Costello should know that a journalist asking him questions is just doing their job, and like any other worker in this country deserves to be treated with respect and to be safe.
— MEAA (@withMEAA) June 7, 2024
It is extremely…
Flight Centre chief executive Graham Turner, who was in London this week, said he has seen the video footage of Mr Costello’s clash with Mendes.
“Everything is on video now and it doesn’t look good. It will be interesting to see what happens,” he said.
“He was annoyed at the persistent questioning but a person in his position, I would have assumed, would expect that.”
Crown Resorts chief executive Ciaran Carruthers was asked at a business forum on Friday if he had any advice for Nine.
“As a proud Irishman I like to keep things relatively simple … don’t engage with villains, don’t be a villain, treat people with care and respect,” he said.
Additional reporting: Christopher Herde
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