Body Hack and Gruen presenter Todd Sampson is under fire from Qantas Airways (ASX:QAN) Ltd shareholders, who have been advised to vote against his re-election as director.
It is likely his standing as an advertising and brand icon has played a significant role in the decision given “the collapse in the airline’s reputation and standing”.
Proxy advisory firm Ownership Matters recommended against the re-election of the long-serving board member in its report released prior to the Qantas annual shareholder meeting scheduled for November 3.
The report highlights that Sampson, along with Maxine Brenner and Jacqueline Hey, is among the longest-tenured members; the latter two are set to exit in February.
Owing to his experience in advertising, marketing and brand management, the report suggests that the board member carries a "heightened responsibility" for addressing Qantas' reputational challenges.
“The recommendation against Sampson’s re-election has been made in the interests of board accountability for the collapse in Qantas’ reputation and public standing, especially over the last 12 to 18 months,” said the Ownership Matters’ report.
On the flipside, the report recommends shareholders vote in favour of director Belinda Hutchinson remaining, “in the interests of board stability”.
High Court decision has ramifications
Ownership Matters stated that the recent High Court decision, which found Qantas to have acted unlawfully in outsourcing nearly 1,700 ground-handling jobs, had not led to a sufficient reduction in executive incentive outcomes.
The firm observed that short-term bonuses had been curtailed and cut by 20% "in response to the challenges currently facing Qantas," pending further information.
“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,” the report said.
Remuneration opposition
A second proxy advisory firm Glass Lewis, has advised shareholders to vote against the Qantas remuneration report, which again comes in light of "significant reputational damage and the share price decline" affecting the company.
“We believe the remuneration structure was poorly aligned with customer outcomes and other stakeholders, which has contributed to Qantas’ damaged reputation,” the Glass Lewis report noted.
Chairman Richard Goyder will depart in November 2024, while Michael L’Estrange will retire this year, followed closely by Hey and Brenner in a few months.
Qantas has plans for a major board renewal.