$11m cheque in mail
AUSTRALIA Post has waved off former chief Ahmed Fahour with a $10.8 million farewell — a $4 million incentive bonus on top of a $6.8 million income package.
But chairman John Stanhope yesterday distanced the current leadership from the 2010 decision to award the contract that led to Mr Fahour’s bumper final pay packet.
Mr Fahour drove a spectacular turnaround of Australia Post before announcing his departure in February amid furore over his pay.
Australia Post has already said former Blackmores chief Christine Holgate will get no more than $2.75 million a year when she replaces Mr Fahour.
Australia Post will also scrap long-term incentives for senior executives to trim their pay by about 20 per cent.
“We understand that community expectations have changed, no question about that, regarding executive remuneration,” Mr Stanhope said.
But he indicated the lucrative contract had worked.
“It was a contract aimed at enticing a high-level, talented executive to transform Austra- lia Post,” he said.
Australia Post had been staring at the prospect of an earnings hole, due to an impending decline in letter volumes that had already hit overseas, but Mr Fahour refocused the business on parcels and e-commerce.
The turnaround included a painful $222 million loss two years ago, but the parcels business has been the cornerstone of a $36 million profit in 2016 and the $95 million full-year profit announced yesterday.
Australia Post will pay Ms Holgate a more restrained $1.375 million salary, with the same amount available in short-term incentives.
“It’s far less of a package than we previously offered,” Mr Stanhope said.
Mr Fahour’s final pay packet included a long-term incentive payment of $4 million plus $6.8 million in salary, shortterm incentives and super.
Mr Stanhope said there was no exit payment for Mr Fahour.
The long- term incentive payments were a result of standards being met in two of the past three financial years, he said.