Richard Goyder has vowed to remain as the chairman of Qantas despite questions about the airline’s corporate behaviour and a potentially damaging court case over allegations it sold tickets for thousands of already cancelled flights.
But the veteran business leader holds five chairmanships – including at Qantas, Woodside and the AFL – prompting questions from governance experts over how much is too much.
Labor senator Tony Sheldon has called for Goyder to resign after chief executive Alan Joyce left on Tuesday, two months before schedule.
University of Queensland law professor Ross Grantham said some board members can become overstretched.
“There is a question about how much time and effort a person can devote to any number of different board positions,” said Grantham.
“Can they really focus on any more than two?”
Boards are responsible for overseeing a company’s compliance framework, financial performance and culture, with the chair holding ultimate responsibility. The board also holds chief executives to account, reining them in when necessary, which can include dismissing them.
While a director may sit on several boards, the chair’s role is more onerous, which typically limits the number of positions they can take on.
However, they do get well compensated for it. Goyder earned $658,000 in 2021-22 at Qantas, and $807,438 at Woodside. The AFL does not disclose the pay of its executive team.
Goyder, a former chief executive of conglomerate Wesfarmers, is also chair of the West Australian Symphony Orchestra and Channel Seven Telethon Trust.
Questions were put to Goyder through Qantas, which declined to comment. He told the Australian he was “fully committed” to the role and would not resign.
Pauline Vamos, the chair of the Governance Institute of Australia, said people can become “overboarded”. She said chairs typically have about twice the work of a board director.
“You also always need to have space for the unexpected,” she said.
While Qantas’ financial performance has been strong, the profits have been recorded during a period marked by a record number of passenger complaints, and a controversial travel credits refund policy, raising questions about the airline’s culture.
There is now a threat it could pay hundreds of millions of dollars in penalties should the competition regulator prove its case.
Investor groups are questioning how the Qantas board allowed so many issues to emerge, and have warned that Joyce’s early departure is not the end of the matter.
The Australian Shareholders’ Association said on Friday shareholders wanted to know whether the board had appropriate oversight of Qantas’ performance, including the risks to the airline.
Louise Davidson, chief executive of the Australian Council of Superannuation Investors (Acsi), said she expected the board to “carefully consider any executive bonuses” in light of the problems facing the company.
“The early departure of the Qantas CEO this week has not erased the issues that concern us, and we are interested in the terms of his exit,” said Davidson.
“We are also keen to hear the board’s plan to repair the reputational damage done to the airline in recent times, and how the organisation plans to rebuild public trust and confidence.”
Acsi represents major superannuation funds with a significant stake in Qantas. The airline’s annual general meeting is scheduled for early November, when investors will vote on its remuneration plans.
