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$3 million pay cut for female AusPost CEO

Wednesday, 28 June 2017
By Print21

"I feel fortunate': New Australia Post CEO Christine Holgate

Australia Post’s new CEO, former Blackmores chief Christine Holgate, will earn millions less than outgoing boss Ahmed Fahour, who resigned earlier this year after his $5.6 million salary was revealed by a Senate committee.

Fahour, who will step down next month after seven years in the role, could receive a three-year bonus of up to $6 million this year, on top of his $2 million salary and other bonuses.

Holgate will be paid just under $1.4 million, with a potential bonus that would double her earnings to about $2.75 million.

In a statement, Australia Post said: Ms Holgate’s remuneration has been set at $1.375 million fixed annual total remuneration and the potential to earn incentive payments of up to $1.375 million, in accordance with the parameters set by the Commonwealth Remuneration Tribunal.

[Following intense criticism over Fahour’s salary package, the Federal Government announced earlier this year that the Remuneration Tribunal would now determine the Australia Post managing director’s pay and conditions.]

Ahmed Fahour, CEO Australia Post, at a Senate Committee hearing.

Holgate, who will start in mid-to-late October 2017, joins Australia Post after a nine-year tenure as CEO of Blackmores and previous executive roles with Telstra, JP Morgan and Cable & Wireless.

Group Chief Customer Officer, Christine Corbett, will lead the business through a ‘CEO transition period’ – between Fahour’s departure on 28 July and Holgate’s arrival in October.

UK-born Holgate says she feels privileged to be appointed as CEO of such an iconic Australian corporation.

“Australia Post has proven itself to be one of the most resilient and successful postal businesses anywhere in the world,” she says. “I feel fortunate to be joining at a time when we can really strengthen Post’s leading position in the eCommerce market – both here, in Australia, and in Asia. I’m a passionate advocate for Australian business seizing the opportunity that’s on our doorstep in Asia and that creates opportunities for everyone – our workforce, our shareholder, the community, as well as businesses across Australia.

“I’m really looking forward to joining the team. And I’m especially looking forward to getting out and meeting the posties, the drivers, post office staff, licensees and other partners who deliver services in communities across Australia, every day.”

'Her knowledge of global eCommerce will be invaluable': John Stanhope, chairman Australia Post

Chairman John Stanhope says Australia Post undertook a thorough global search before choosing Holgate as the outstanding candidate to lead the business through the next phase of its transformation program.

“Over the past seven years, we have transformed Australia Post into Australia’s leading parcels and eCommerce company and introduced critical reforms to the letters service. With Post now entering a new stage in our transformation, it’s the perfect time for Christine to take the helm. Christine has a demonstrated track-record of delivering results in large, complex organisations, both here in Australia and internationally.

“The board was impressed by her experience of working very successfully in a range of different industries that are highly regulated. And, on top of that, she has a proven ability to implement strategy – and successfully grow a business in Asia. Her knowledge of global eCommerce will be invaluable as we pursue our Asian Strategy, which is all about offering logistics support to Australian businesses that are either selling in Asia, or sourcing their products there.

“Christine’s business philosophy is also a perfect fit for Australia Post,” says Stanhope. “She is a firm believer that businesses must perform commercially, but also serve the community. And that’s entirely consistent with our objectives as a community-based business that has both commercial objectives and community service standards to uphold.”

The Australian Catalogue Association welcomed Holgate to the job.

“Warm congratulations to Christine Holgate on this new role,” says ACA CEO Kellie Northwood. “We look forward to working with Ms Holgate in our ongoing Australia Post partnerships as we collaborate to build a positive future for the mail and print industries.”

 

 

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