Qantas Board renewal - Goyder goes

[Andrew Curran]

Inevitable, but Richard Goyder has just announced he will stand down ahead of the 2024 AGM

"The Qantas Board today announces plans for board renewal in recognition of the reputational issues facing the Group and to support restoration of trust in the company.

Chairman Richard Goyder will retire prior to the Annual General Meeting (AGM) in late 2024

"As announced in May, non-executive director Michael L'Estrange will retire at this year’s AGM on 3 November 2023. To facilitate further renewal, Jacqueline Hey and Maxine Brenner will retire at the Qantas half-year results in February 2024 after 10 years of service.

As planned, three new directors will offer themselves for election at this year’s AGM (Doug Parker, Dr Heather Smith, and CEO and Managing Director Vanessa Hudson) as well as two existing directors (Todd Sampson and Belinda Hutchinson)."

Source : QF media mailout 11.10.23

 

[RooFlyer]

Thanks @Andrew Curran . Qantas media release here:

https://www.qantasnewsroom.com.au/media-releases/qantas-board-announces-renewal-plans/

Jacqueline Hey and Maxine Brenner to go next year, before Goyder.

 

[levelnine]

Completely unsurprising. Decks need to be cleared. Joe Aston will be very chuffed.

 

[Pushka]

Taking any heat out of any discussions for next 12 months.

 

[Mattg]

Inevitable, but Richard Goyder has just announced he will stand down ahead of the AGM

He'll still be around for another year though. It's ahead of the late 2024 AGM.

 

[MARTINE]

He'll still be around for another year though. It's ahead of the late 2024 AGM.

AJ left a little early - would not be surprised if same here. Still much litigation ahead

 

[HirafuHeartAttack]

Excuse my ignorance but is he under any threat to be ousted at this years AGM? (like i'm sure many Qantas customers would likely appreciate)
Or is it inevitable he will continue until next year? (given that despite the woeful customer experience the shareholders elect the board and they've delivered fairly sound financial results)

 

[offshore171]

Excuse my ignorance but is he under any threat to be ousted at this years AGM? (like i'm sure many Qantas customers would likely appreciate)
Or is it inevitable he will continue until next year? (given that despite the woeful customer experience the shareholders elect the board and they've delivered fairly sound financial results)

I don’t believe he is up for election at this year’s AGM. (Some of the others are)

There would need to be a spill motion put forward to remove him, and it would need to get enough votes. The big shareholders and proxies could make it happen.

 

[RooFlyer]

Excuse my ignorance but is he under any threat to be ousted at this years AGM? (like i'm sure many Qantas customers would likely appreciate)
Or is it inevitable he will continue until next year? (given that despite the woeful customer experience the shareholders elect the board and they've delivered fairly sound financial results)

No chance this year's AGM. I don't think he's even up for re-election. His departure timing would have been squared away with substantial shareholders over the past month or so.

 

[HirafuHeartAttack]

I don’t believe he is up for election at this year’s AGM. (Some of the others are)

There would need to be a spill motion put forward to remove him, and it would need to get enough votes. The big shareholders and proxies could make it happen.

No chance this year's AGM. I don't think he's even up for re-election. His departure timing would have been squared away with substantial shareholders over the past month or so.

Thanks for the prompt responses.
@RooFlyer when you say substantial shareholders I assume you mean other boards from large investment corporations like Perpetual and Vanguard?

 

[RooFlyer]

Thanks for the prompt responses.
@RooFlyer when you say substantial shareholders I assume you mean other boards from large investment corporations like Perpetual and Vanguard?

Yes - usually superannuation funds. A 'substantial shareholder' is an entity that controls 5% or more of the traded shares#. ASX listing rules (which are incorporated into Corporations Law) carves them out with special rules, and rules for the company in reporting them (changes etc).

In reality, 4 or 5 super funds that might collectively hold 15% of the shares (or even up to 25%, or more) will control the vote outcomes at company meetings, as the vast majority of punters don't vote, or give their proxies (voting rights) to the Chairman. So the company just has to schmooze or placate, or negotiate with their substantial shareholders and the meeting outcomes are effectively decided. Just about all large companies operate this way.

# You can't look at the "top 20" shareholders in the Annual Report to see who the Substantial shareholders are - a lot of those entries are aggregated holdings and there is no one entity or person who controls how the shares vote . Shareholdings can be held behind several layers of entities if the ultimate controller wants to conceal themselves.

 

[offshore171]

His departure timing would have been squared away with substantial shareholders over the past month or so.

That could be legally sketchy. Material inside information like this must be shared with all shareholders and indeed the market publicly and simultaneously

 

[RooFlyer]

That could be legally sketchy. Material inside information like this must be shared with all shareholders and indeed the market publicly and simultaneously

Agree; poor wording by me - he would have been careful not to say "OK, I've decided to ....", in fact probably didn't feel the need to give any feedback on himself to the fundies. But thankfully, he's read the room, and has now told everyone prior to the upcoming AGM, so presumably, he hopes, they will leave him alone now.

 

[jb747]

It's a start, but I'll bet he's replaced by a clone.

 

[drron]

I wouldn't be surprised if the large shareholders had approached him with the intention of hastening his departure but allowed him a years stay of execution.
ASX rules well the company has put out a press release so it is public knowledge anyway.

 

[drron]

So I have looked at the ASX and the QF announcement was sent to the ASX.

 

[offshore171]

So I have looked at the ASX and the QF announcement was sent to the ASX.

One would hope that no major shareholders were given notice prior to that.

The market likes it, up 2% far today, suggesting there is an appetite for board renewal.

 

[RooFlyer]

So I have looked at the ASX and the QF announcement was sent to the ASX.

Abt two minutes prior, which is all that was required.

 

[anyonebutqantas]

Also creates room to say in a year's time 'oh the challenges are significant and we need stability to work through them, therefore I will actually continue as chairman'

 

[RooFlyer]

I think positive of this is that the new CEO will have more freedom to do what she wishes to do, and not having Dick Goyder standing over her as a perennial protector of the past management and especially “the best CEO by the length of a straight”.