Qantas shareholders should not re-elect marketing guru Todd Sampson to the board at the airline’s AGM, a shareholder advisory firm has warned.
In its report, Ownership Matters said that since 2015, under the Gruen TV star’s watch as director, there has been a “collapse of the airline’s standing and reputation.”
The airline has been plagued by controversies in recent years, including delayed flights, lost luggage, the wrongful firing of nearly 1,800 employees and the difficulties people have had in getting refunds for flights canceled during the pandemic.
The advisory group said Mr Sampson, 53, was one of the longest-serving board members, along with Jacqueline Hey and Maxine Brenner, who left their positions in February.
The report said Mr Sampson had ‘increased responsibility’ for the damage to Qantas’ reputation due to his background in advertising, marketing and brand management.
Qantas shareholders should not re-elect marketing guru Todd Sampson (pictured) to the board at the AGM on November 3, a shareholder advisory firm has warned.
“The recommendation against Sampson’s re-election is made in the interests of addressing the board’s responsibility for the collapse of Qantas’ reputation and public standing, particularly over the past twelve to eighteen months,” the report said.
However, Ownership Matters advised shareholders at the November 3 AGM to re-elect Belinda Hutchinson, 69, ‘in the interests of board stability’.
The consultancy group is also against accepting the airline’s pay report due to the recent Supreme Court ruling which found Qantas had unlawfully outsourced 1,683 ground handling staff jobs.
The High Court ruled unanimously in favor of the Transport Workers Union, which challenged Qantas’ argument that it was a necessary step in uncertain Covid times.
The Ownership Matters report noted that short-term bonuses had been withheld and reduced by 20 percent, “in response to the challenges Qantas currently faces,” until more information became available.
‘It is not clear what further information the board needs to respond to the Supreme Court’s unanimous decision, which has exposed the airline not only to reputational damage, but also to financial penalties and compensation based on economic loss to the former employees. ‘
The call for shareholders to end Mr Sampson’s tenure as Qantas director follows the announcement of several high-profile departures at the troubled airline.
Former CEO Alan Joyce was due to end in November after 15 years at the airline, but instead left in early September with a $24 million golden handshake.
The airline has been plagued by controversies in recent years, including delayed flights, lost luggage, the wrongful firing of nearly 1,800 employees and the difficulties people had in getting refunds for flights canceled during the pandemic.
Alan Joyce (pictured right) has already left Qantas, while Olivia Wirth (left) will leave in February
Then chairman Richard Goyder revealed earlier this month that he would follow Mr Joyce out the door.
Qantas said Mr Goyder would step down before the company’s annual general meeting at the end of 2024.
The latest to announce that their time at the airline is coming to an end was frequent flyer program boss Olivia Wirth.
She will officially step down in February 2024, together with current directors Ms. Hey and Ms. Brenner.