Australia Post boss Christine Holgate resigns over Cartier row

Australia Post chief Christine Holgate has apologised for causing any offence over the Cartier watch gift row, acknowledging it didn’t pass the ‘pub test for many’.

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

Australia Post chief executive Christine Holgate has apologised for causing any offence over the Cartier watch gift row, acknowledging it didn’t pass the “pub test for many” as she announced her resignation with immediate effect.

Ms Holgate said she “deeply regretted” spending almost $20,000 on purchasing the watches two years ago — a decision she said former chairman John Stanhope supported at the time — and her departure would allow Australia Post to focus on its peak Christmas delivery period. “My sincere apologies if my words or actions have offended others as this would never have been my intention because I have always held Australia Post in the greatest regard,” Ms Holgate said.

While Australia Post chairman Lucio Di Bartolomeo has expressed confidence in acting chief executive Rodney Boys, outgoing Virgin chief executive Paul Scurrah has emerged as the top of a list of candidates to replace Ms ­Holgate.

Mr Scurrah served on Australia Post board for almost two years from July 2017 and will step down from Virgin when its sale to US Private Equity giant Bain Capital is finalised later this month.

While Mr Scurrah declined to comment, The Australian understands he could start at Australia Post almost immediately, and his reputation of building good relationships with the unions and across a large workforce make him an ideal candidate.

Ms Holgate, meanwhile, will take a break before considering her future career options in the new year.

Her resignation follows a tumultuous 10 days, after it was revealed at Senate estimates that she spent almost $20,000 on rewarding four senior executives with Cartier watches after striking a $66m a year deal with three of the big four banks two years ago.

The Cartier gifts came on top of one of the executives — executive general manager of business and government Gary Starr — receiving a cash bonus of more than $400,000, taking his total salary to more than $1.2m that financial year, according to the group’s annual report.

Ms Holgate said she still believed in rewarding staff for outstanding performance but regretted the decision to purchase the watches. “Philosophically, I believe if you want to drive positive change, you need to thank and reward positive behaviours,” she said.

“However, 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.”

Ms Holgate has received backing from Malcolm Turnbull, former boss Marcus Blackmore, Australian Super chief executive Ian Silk and Collingwood Football Club president Eddie Maguire among others.

The Australian understands she has received calls sounding her out from a raft of other Australian corporate leaders.

Ms Holgate’s departure follows her predecessor Ahmed Fahour’s resignation — which also happened in the wake of a political storm — in February 2017 after his $5.6m salary was revealed at Senate estimates.

Ms Holgate had come under pressure after her office amassed almost $300,000 on its corporate credit last year and The Australian revealed hair and makeup were among expenses.

Last week, she issued a statement via her lawyer that there was no legal basis for her to be stood down while the departments of Communications and Finance investigated executive expenses and Scott Morrison had humiliated her in Parliament.

On Monday, Ms Holgate said she was “not seeking any financial compensation” and no hard feelings towards the government.