Strong support for Qantas chair
A report in The Australian says that James Strong’s push for the Qantas chair received a boost yesterday with major shareholder Balanced Equity indicating it would be happy with him taking on the job in November.
Balanced Equity chief executive Andrew Sisson said Mr Strong, who stepped down as Qantas Chief Executive in March 2001, would be a good Chairman, but he said there might also be some other good candidates for the job, which will become vacant when Margaret Jackson steps down at the annual meeting.
“We will just wait and see,” said Mr Sisson, who controls 5.3% of Qantas stock. , adding, “It will take a little time to play out.’
Ms Jackson announced that she would step down as chairman amid criticism of her performance during the recent failed takeover bid.
Corporate governance executive Sandy Easterbrook of CGI Glass Lewis also endorsed Mr Strong as Chairman yesterday, despite the specific clause in the airline’s charter banning former CEO’s from the role
Mr Easterbrook said Mr Strong did not rejoin the board until July last year, a six-year break that was long enough for him to be considered an independent director.
He said Qantas could also benefit from having a Chairman who knew the company and the airline industry well, given the turbulence of the failed $11 billion private equity takeover bid launched last December by Airline Partners Australia.
He said the clause in the charter was inserted to prevent a situation where a CEO moved straight on to become Chairman.
The moves come as the Qantas board yesterday discussed the Chairmanship and new board appointments, the meeting ending yesterday without any specific announcement.
A Qantas spokesperson said the board had had “substantive” discussions on strategic initiatives, board representation and the Chairmanship.
Qantas has appointed executive search company Spencer Stuart to help it fill three board positions.
One is already vacant and two more spots open up in November after the departure of Ms Jackson and director James Packer.
The chairman is expected to be appointed from within the ranks of the existing Board.
Report by the Mole
John Alwyn-Jones
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