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Qantas chairman Richard Goyder will stand down in the next 12 months as the Qantas board tries to repair the airline's damaged reputation.
Key points:
- Richard Goyder will retire before Qantas' annual general meeting in November 2024.
- The Transport Workers' Union has criticised the announcement, calling for more accountability.
- Mr Goyder has apologised again for Qantas' behaviour
The company's board made the announcement this morning in a statement to the stock exchange.
Mr Goyder has been under increasing pressure to resign from the airline, following the premature departure of controversial former chief executive Alan Joyce in early September.
It comes after the High Court last month found the airline acted illegally when it sacked 1,700 ground crew staff members during the COVID-19 pandemic in 2020.
The competition regulator also recently sued the airline for allegedly selling tickets to thousands of flights that had already been cancelled in 2022.
Mr Goyder has been Qantas chairman since late 2018.
Now the airline's board says it's time for board renewal "in recognition of the reputational issues facing the group."
"As a board, we acknowledge the significant reputation and customer service issues facing the group and recognise that accountability is required to restore trust," Mr Goyder said in a statement on Wednesday.
Less than three weeks ago, Mr Goyder was still claiming he had the confidence of the board and major investors wanted him to stay.
Mr Goyder appeared before a Senate inquiry examining the federal government's decision to reject Qatar Airways' bid for additional flights, alongside CEO Vanessa Hudson and Qantas' general counsel Andrew Finch a fortnight ago.
During that fiery hearing, he twice repeated claims that he had the support of Qantas shareholders — despite shareholders demanding his resignation a day earlier, and putting the rest of the board on notice.
Rachel Waterhouse, the CEO of the Australian Shareholders' Association (ASA) welcomed Mr Goyder's decision to depart the airline's board.
"Leadership is required by the Qantas chair and the board, and retail shareholders will be satisfied to see that board renewal is coming," she said.
"It will be important for the board to reflect on governance matters and ensure the right skills are put in place on the board to support an effective organisational strategy that focuses on the customer and restoring trust."
Ed John from the Australian Council of Superannuation Investors (ACSI) said the development was an "important step" forward in Qantas rebuilding trust with its long-term investors.
"Change at the board level is an opportunity to reset and restore confidence in the company, and all eyes will be on the appointment of a new chair to lead the turnaround," Mr John said.
"As we saw at the Commonwealth Bank several years ago, a governance reset and the appointment of a high-quality chair with a mandate for change made a significant difference."
Union calls for more accountability
The airline says board members Jacqueline Hey and Maxine Brenner will be retiring at the Qantas half-year results in February 2024.
It says three new directors will offer themselves for election at this year's annual general meeting on November 3.
They include the new Qantas chief executive and managing director Vanessa Hudson, Dr Heather Smith and Doug Parker.
It says once the new directors are in place, the board will have an average tenure of around three years at the 2024 AGM, providing a balance of "fresh leadership with necessary continuity" on the board.
However, the Transport Workers' Union has criticised the announcement, saying Mr Goyder is attempting "to retire in dignity after presiding over illegal conduct," and new CEO Vanessa Hudson should be excluded from the board.
Michael Kaine, TWU national secretary, says there needs to be a total governance reset at the airline.
"This announcement is an attempt by Goyder to leave in a dignified manner with another year's pay in his pocket, after presiding over the largest case of illegal sackings in Australian history," Mr Kaine said.
"This isn't genuine board renewal, this is just shuffling the deckchairs.
"We need to put an end to illegal conduct being blindly rubber-stamped by a board that fails to scrutinise the CEO who is treated as their equal by having a place on the board.
"With no worker representation, Qantas governance has ignored the needs of the workforce and decimated jobs and standards.
"A fresh start for Qantas governance requires a new board composition that excludes the CEO and embeds a worker representative to avoid the repeat of colossal errors of judgement being repeated," he said.
Mr Goyder on Wednesday said Qantas had gone through "an incredibly difficult period" since its operation was grounded during the pandemic and "mistakes were made."
"We again apologise for those times where we got it wrong," he said.
"I have always sought to act in the best interests of Qantas. Measured and orderly succession at board level will support the important work underway led by Vanessa and her new management team.
"Fundamentally, the group is in a very strong position to overcome its current challenges and deliver for all its stakeholders in the years ahead," he said.