Proxy firm tells Qantas investors to vote against Sampson
Proxy adviser Ownership Matters says Qantas shareholders should vote against the re-election of Todd Sampson to the airline’s board, and hold him accountable for brand and reputation issues.
“This recommendation has been made in the interests of board accountability for the collapse in Qantas’ reputation and public standing, especially over the past 12 to 18 months,” Ownership Matters said in a report to investors.
Todd Sampson is the latest Qantas director to feel the heat from investors.
“Sampson has heightened responsibility for this, despite the board’s collective responsibility, given he has been a director for more than eight years and his background in advertising, marketing and brand management.”
Ownership Matters said Qantas had expressed concerns that Mr Sampson’s exit could destabilise the board, given the average tenure of directors will fall to three years after its chairman, Richard Goyder, steps down in November.
The proxy firm also recommended investors reject Qantas’ remuneration report, given “there has not been an appropriate reduction” since the High Court ruled that Qantas acted illegally when it outsourced the roles of 1700 employees in 2020.
“The board has instead deferred paying the financial year 2023 annual incentive and has noted its ability to claw back the vested financial year 2021 long-term incentive, which is now subject to a holding lock for at least a year, as it awaits further information both in relation to the High Court decision and the action the ACCC launched against Qantas ... in relation to the airline allegedly selling tickets on already cancelled flights,” the report said.
“It is not clear what further information the board requires in order to respond to the unanimous High Court decision, which has exposed the airline not only to reputational damage but financial penalties and compensation on the basis of economic loss to the former employees in addition to redundancy payments already made.”
Qantas’ annual meeting will take place on November 3 in Melbourne. The Sydney Morning Herald reported that US-based proxy adviser Glass Lewis has also rejected its remuneration report.
On Tuesday, Qantas director Maxine Brenner suffered a staggering 17 per cent protest vote against her re-election to the Telstra board, with shareholders expressing concerns over governance failures at Qantas. Proxy adviser ISS had recommended against her election at Telstra.
Ms Brenner agreed to step down from the Qantas board, along with Jacqueline Hey, in February.
Separately, the Labor government backflipped on Wednesday and reinstated the Australian Competition and Consumer Commission’s monitoring powers for aviation. Domestic airlines will now be subjected to quarterly reports in an attempt to finally address competition concerns in aviation.
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