Australia Post chief executive resigns after pay controversy

by HCA23 Feb 2017
The chief executive of Australia Post, Ahmed Fahour, has resigned following a pay dispute with the Turnbull government.

Details of his $5.6 million wage for 2016 provoked criticism from the Prime Minister and a range of high-profile figures including One Nation leader Pauline Hanson who said she was “absolutely disgusted”.

At $5.6 million, Fahour's wage for the past 12 months is more than 10 times that of the Prime Minister.

Turnbull made it clear earlier this month that he had complained to the Post board chairman about Fahour’s remuneration, which led to a public backlash.

Fahour said the time had come to give someone else a chance in the role.

“The main reason why I am hanging up the footy boots at Australia Post is I’ve done seven years in this job — the average CEO in this country is lasting around three years,” Fahour said.

“Seven years is a long time ... particularly as it is a 24-7 job.”

Fahour also responded to Hanson’s comments by saying that running Australia Post is a "little bit more complicated than running a fish and chip shop".

Fahour will stay on in the post until a new successor is appointed.

John Stanhope, Chairman of the Australia Post Board, said that Fahour's legacy as CEO will be felt for many years to come.

"By any measure, Ahmed has done an astounding job in transforming the business," said Stanhope.

"When he started, he was set the challenge to 'write the next chapter in the history of Australia Post' – and he certainly rose to that challenge.

"Now, with the business entering the next phase of its transformation, Ahmed's decision to resign provides opportunity for a new leader to continue the development of Australia Post into a leading international eCommerce player."

Stanhope added that the Board would begin the search for a new CEO immediately. The Board will consider both internal and external candidates, and they are expecting to announce Fahour's successor in the coming months.

Australia Post today also announced a $197 million half year profit before tax which follows the organisation returning to profit in 2016.

 

COMMENTS

  • by EnvyMuch? 23/02/2017 2:25:10 PM

    Who could blame him after the spectacle that the government made of his package, as if it was his fault. His pay was commensurate with the private sector - and was probably less than he would have received there. The pay of the Prime Minister is hardly a relevant benchmark. Good luck to him.

  • by RealWorld 23/02/2017 3:34:13 PM

    The point is that Australia Post is NOT the private sector. His pay should not be compared to the private sector, but to the compensation of comparable leaders of other, larger, postal services across the rest of the world.

  • by david (halls head) 23/02/2017 4:11:39 PM

    The Howard Government legislated to stop businesses paying wage increases above a defined amount when it was trying to destroy unions
    and workers conditions years ago SO why doesn't the government (obviously when labour is in) legislate a Maximum Salary Rate for employees (including CEO's) of businesses of say One Million !

    That would give the overpaid greedies a kick in the arse.. Of course some idiots would claim we wouldn't get the best talent but that is crap!

    David (Halls Head)

Most Read