Trouble at the top table

When a key executive suddenly quits, shareholders have to calmly consider whether they should go too, or hang in there

- PAM WALKLEY

Embattled Qantas CEO Alan Joyce’s shock announcement last month that he was departing two months ahead of schedule almost halted the 12% slide in share price the company has experienced over the past month.

Indeed, it sparked a brief rally early in the day, with the shares lifting 1.6% to $5.74, before sinking back to close at $5.64, one cent lower than its close the day before.

The Qantas share price has experienced a bumpy ride since it was announced in early May that Vanessa Hudson would replace Joyce as CEO when he stepped down after 15 years at the helm, then scheduled for November. At the time it fell 2.65% to $6.58. Over late August, the airline’s share price slumped further as it faced a barrage of legal actions and negative publicity, leading to Joyce’s premature departure.

Rachel Waterhouse, chief executive of the Australian Shareholders Association (ASA), had called for the Qantas chairman, Richard Goyder, to withhold millions of dollars in bonuses from Joyce and other Qantas executives.

“It’s a reputational issue and the board is responsible for managing that,” Waterhouse told The Guardian newspaper. “There’s deterioration in the brand and the share price. They might need to make some decisions to put bonuses on hold or reconsider their remuneration.”