Dixon admits greed can be bad

[Whiskey Oscar Golf]

Interesting how failure and greed can look ok in hindsight.


Qantas lucky $11bn takeover bid crashed, Geoff Dixon says | NEWS.com.au (http://www.news.com.au/travel/story/0,26058,24656809-5014090,00.html)

[Dragun]

I'm speechless really.

"The real Achilles heel was that it got very, very emo-tional - principally because I and the senior management team were going to earn tens of millions of dollars as part of it."

That says it all.

[Angle of Attack]

Dixon's an idiot, pure and simple. Enough said.

[Lodown]

Mr Dixon said Qantas management deserved credit for having recovered quickly from the disappointment,

"I think lesser companies and a lesser management team could have imploded. There could have been real problems," he said.


He might be retiring, but the ego goes on and on.

[rodchucker]

Well I'll be blowed, atlast a light is on, but I suspect only to rewrite the context of any lingering legacy.

These Einsteins were paid to look after the shareholder interest's and history speaks for itself on what actually happened and what they tried to do.

Sure,the place would have been trashed if the bid had been successful, and rather than give any credit for what exists now, I would suggest it was DESPITE the management rather than anything they actually achieved, whilst undoubtedly looking for post retirement gigs.

Remember the cost to the company of all these events in $$$ and distraction, my god they could have even been growing or building the company, rather than basking in the glory of lawyers, bankers and related corporate leeches.

The other real question is whether anthropy is better with or without such kind offers, as it appears some still dont get $$$ are not everything and these gigs cannot be bought.

[RedTBar]

"I think people saw us as being compromised, despite the fact it was a good offer.

"It didn't happen, and I'm very pleased now that it didn't happen."
So if the offer was so good then why is he VERY PLEASED it didn't happen?

The part I liked is that he justifies the payout to himself and the other management by saying that is how equity takeovers work.If the role of the board is to look after the interests of the shareholders and the offer so good then why did they not endorse the takeover bid without the need of a financial offer to themselves?

Is it true that in a recent takeover of an Australian bank that the outgoing CEO is getting paid $11 million.

Sound familiar?

[RedTBar]

rodchucker,
Did you mean anthropy (?) or atrophy.:E

[QFinsider]

The whole transaction was a sham from start to finish. "Project Suzie" was planned from the early days of privatisiation with Kerry and the board as it was, including I may add, many of the protagonists in the recent failed bid. Macquarie was as thick in it then as they were with this one...

Corporate Governance is the key to ensuring the rules are adhered to.
The scary part is the beneficiaries of the rules are usually the rule makers.

Just where is the scrutiny of this "transaction" and many others?
As we have seen with Enron before and now the financial mess in the western world, allowing the foxes to run the chicken coop very rarely results in a good outcome....for the chickens. :suspect:

[Devil Dog]

Here's a good read google up "Project Suzie"..Its amazing the extent of the daisy chain..the same criminals appear over and over...and no authority lays a glove on them...growl!!

[rodchucker]

RedTBAR,

Yep atrophy nails it provided that this doesnt include any natural occurring event, perhaps cannibalism should be an essential element of what was attempted here.

None of those involved should be alllowed to continue this pretence that has now been started by this newspaper article.

We must maintain the rage, tell them we will not forget, and when there is any attemt to seek forgiveness, say YES WE CAN, BUT NO WE WONT.

Tell them we also dont want their philantropy!!!Piss of back from where they came and let us all get on with trying to resurrect a once great company that should stand for better than it has in recent years.

Let the record stand as it should.

[teresa green]

I had to read the article a few times over. My original reaction was amusement, that slowly turned to anger, followed by a need to reach for a sick bag. Is he that insensitive to how people felt, how the whole Australian community felt, that he could come so close to destroying a Australian Icon for his and Jackson's bank account and then CONGRATULATE them for being such jolly good sports for not dummy spitting? Spare me. Not one word for leaving thirty six thousand people feeling helpless and frustrated, the destruction of one of the best heavy engineering sections in the aviation world, a company that was once the pride of the nation, now struggling to find its feet again after such a battering with the massive job of winning back PAX and convincing its O so loyal staff, that there are better times ahead, Alan Joyce I would hate to be you. And now some dimwit wants the bloke to apply for Premier of NSW (please let this be a joke) a state that is already in a fatal spiral dive, but if he does'nt do that he is going to help the indigenous people of this country (as if they don't have enough problems) Geoff, please just go away. :{

[RedTBar]

rodchucker,
Yeah I agree that cannibalism pretty much sums up the idea they had.You're right as well about forgetting or forgiving mainly because he doesn't regret anything.
After reading the article all I could think of was the trials in Nuremberg.
No regret or repentance other than telling us he was happy it didn't happen but still it was a great idea.
In other words he would still do the same thing again.

[Stationair8]

Dixon would make a great Premier of NSW, he could sell the Bridge and lease it back to NSW public, he could do a lot of nice deals with government utilities for Macquarie Bank on behalf of himself, privitize Bondi Beach for him and his mates personal use and lots of other sleazy deals.

[BrissySparkyCoit]

Now that Dixon has finally admitted guilt, will he face an inquiry?

[moa999]

If the deal had happened however, I don't think management would have gotten their multi-million dollar payment -- and probably would have earnt a lot less than they are now
After all, in private equity, management only share in the case of a successful exit (and return to the investors)

What would have happened here
- Query if all the debt would have been placed before the meltdown happened potentially making for some interesting discussions with the banks
- Market downturn has significantly impacted the value of parts of the business that were going to be sold to repay debt (eg frequent flyer, terminal, planes). Thus business would be carrying a whole lot more debt than predicted
- Fuel price at over $140 would nat have been considered in the business case, nor the current economic downturn
So at about this point the business would be in real trouble - too much debt and falling earnings. Management would probably be close to getting replaced.
And very unlikely that the business could be refloated any time in the near future to deliver a return sufficient that management would get their bonuses.

[Dragun]

If you want to read an even more sickening article, have a look at the DOUBLE page spread in today's Sunday Telegraph (16th) dedicated solely to him. No really, I'm serious.

[RedTBar]

moa999,
The difference between what you are saying and most of us is a single word 'intent'.
What would have happened is open to conjecture and debate and no one really knows what exactly would have happened given the unknown state of Allco and the current sub prime mess.
If you read his interview he still thinks it was a good offer and only suggests that it was the tens of millions in pay out to himself and the other managers that was the fly in the ointment.
The intent is still there and no regret other than with hindsight about the mechanics of the pay outs.
The other part is that he never tells the interviewer why exactly he is relieved that the deal did not go ahead.He only tells us that the issue of management involvement was a bad idea and that the equity group would have to negotiate what directors and managers they want after the sale.
This still does not address the issue of huge multi million dollar deals to upper company staff to endorse a deal even by tacit approval.

[Buster Hyman]

Geoff's had an epiphany! Praise the Lord & pass the Ketchup!:rolleyes:

[RedTBar]

Praise the Lord & pass the Ketchup!
When it comes to the board room you mean MOET don't you?

[Kangaroo Court]

Dick Smith should run Qantas! At least he'd keep the freakin' jobs in Oz!

[Keg]

I reckon we're all taking his comments the wrong way.

Most people are reading them the way we think we'd react but you need to read them from Geoff's perspective. This isn't an apology by Geoff and his comments about emotion don't relate to him, they relate to us. When he says there was a lot of emotion surround the bid he's talking about the way that the rest of the world reacted, not his own reaction. Remember he sees the rest of us as being quite different (and less worthy) than he....otherwise why wouldn't we be doing his job.

Read it with his cold dispassionate outlook on the rest of the QF workforce and you'll see that this is no apology andnore is it an admission that greed is bad. It is yet another example of Geoff being out of touch with the masses though.

[RedTBar]

Keg,
No misunderstanding if you read my post.After reading the article all I could think of was the trials in Nuremberg.
No regret or repentance other than telling us he was happy it didn't happen but still it was a great idea.
In other words he would still do the same thing again.
I can see him standing in the dock.
"Yeah I thought it was a great offer"
"But next time don't involve us until it's over and then put us on the payroll"
"Other management would have copped a hiding and might have folded after the deal went south but not us"
"The money offered to us is not wrong that's the way these deals work"

[pussy.galore]

Agree Keg
Dixon is a sociopath.
His comments are indeed not an apology but rather a detached commentary regarding the events and how they related to those individuals he considers less important.......customers,shareholders and staff.
Dixon will be remembered as an individual with a grand sense of entitlement,lack of empathy and a broken zipper on his suit pants.

[RedTBar]

The article is more of a PR release then an interview.I would like to know why he is relieved that the take over did not go ahead?
He tells us the offer was good but that the offer of tens of millions did not sit well with most of us.He did not think that the bid would have dragged the company down like some other private equity bids.
So why is he happy it went south if it was so good?

Is it a warm and fuzzy "I'm a good guy really" spin article designed to soften people up for his latest adventure into something else ?

When you look at some of the other jobs for the boys and where other people have ended up I would not be surprised in the least if he was offered some plum job as UN ambassador or post like an envoy.

[Capt Kremin]

The upper management in Qantas at the time, from Margaret Jackson on down is/was very much of the view that management deserves all the spoils of a profitable year and that the unions/workers are simply bit players with no real input into the success of the Company. I have this from an impeccable source.
Geoff Dixon was going to be gifted 1% of the Company. Other senior management were going to share another 3.5% between them. Free, Gratis.... unearned.
Forget the charity foundation. GD, based on the Mac Bank valuation of what Qantas was potentially worth when resold back to the market after the bloodletting that Workchoices was designed to allow, personally stood to gain around 250 million dollars.
Is it any wonder these people were distracted?
Please Geoff... we know all about you and your mates. We know what you had planned and the lives you were planning to wreck in your pursuit of obscene, unearned wealth. Stop trying to re-write history... we know what really went on.:mad:

[skyshow]

Wasn't the charity foundation Dixon was going to put his money into/start up with, run or going to be run by a close relative of his? Meaning the money wasn't going to be too far away from the family anyhow? Also could a big donation like that be tax deductible? hahahaha

[indamiddle]

donations to a registered charity generate a tax benefit.
done properly the angry midget would never have paid tax again.

[rodchucker]

There is no doubt in my mind this is about trying to influence the enduring legacy, so dont let them get away with it.

Is it a coincidence that we seem to have two articles within days of each other? Can we expect more stories in march next year, I hope not.

This team and their advisors were intelligent, so would have well known the issues around management payments in these circumstances,yet blazed on regardless with some window dressing to try and make it look ok(surely they would have know about atleast one other company where the failed efforts resulted in all Execs involved being removed immediately) and still couldnt remove the stench in some peoples mind.

Talk of charities was merely a diversion from the real issues and another pr stunt to distract the scrutiny (sounds familiar yet again so get a new record). Weren't similar issues raised by US authorities on the Lowy family recently which showed what is possible?

ASIC claim an interest in corporate governance issues, so where the bloody hell are you? Perhaps it is too late for QF but surely there are issues to be considered in relation to future corporate roles by any of this team. ASIC and APRA have a long list of disqualifications as a history lesson on the standards of expected behaviour and the bar is set very high, so let them be judged by someone other than the QF Board!!!

I also dont want to see or hear about any philanthropy or any more stories about any QF Execs view on history because frankly it doesnt help anyone but those involved.

As usual, I agree with Theresa so please just go away.

[Pinky the pilot]

because I and the senior management team were going to earn tens of millions of dollars as part of it."

No you were'nt Geoff! You were not going to earn all that money but rather you were going to be paid it. There is a difference between earning something and being paid for something, a difference of which apparently you are unaware or rather I should say, ignorant.

Agree with Teresa and rodchucker. My wish is for you to involve yourself in sex and travel!:mad:

[pussy.galore]

Greed is bad......only if you are perceived to be greedy and it might then interfere with a diplomatic posting or business position.
Greedy A`holes like Dixon are currently on the nose.
These reports are simply glossy spin by a couple of Dixons media mates designed to smooth the way for him to do something philanthropic(sic)
Its axiomatic that once an A`hole always an A`hole.
In Dixons case it is most certainly genetic.....simply a bad seed

[blow.n.gasket]

I hear Bubba wants a new bitch!:}

[rodchucker]

Pinky,

Thats my life long ambition so dont crowd the pond with Wally's.

Life is tough enough as it is, but guess we all have our dreams.

cheers

[Quill Shaft]

F.O.G! Good riddance!!!

[RYAN TCAD]

No wonder many of us are cynical of people like GD. Like I've said in the past, the hypocrite and the hypocrisy of it all.

[Pinky the pilot]

rodchucker; I know what you mean, but that's not what I meant!

[RedTBar]

After reading the article and thinking about it I can see something on the horizon gaining momentum.
This all reeks of an announcement of an appointment for GD to step onto the world stage as an envoy, trade representative,ambassador or whatever.
Brace yourselves and buy a good supply of lomatil or imodium.

[QF MAINT OUTSOURCED]

i think Geoff is telling Alan he needs to show wage restraint, 3 % should about do you Al

[indamiddle]

at least the p/a s for mini-me wont be having the same problems UNDER FOG. no wonder the wage rises were huge, he must have gone through a power of what the french refer to as 'le weekend'

[teresa green]

RedTbar, well at least it won't be the Vatican, Tim Fisher got that guensey, lets see now, Afghanistan is nice this time of the year,(The Khybar Pass comes to mind), (they have a nice little airline they are trying to get off the ground there) (in every possible way I might add) Zimbabwe now there's a thought, he and Murgabe seem to think the same ( just keep whipping them until morale improves) but sadly GD being of the Labor Party (unless of course it comes to QF unions) our Kevvy will find him a nice little position, perhaps Australian advisor to Her Majesty (like Sir Les Patterson so to speak) Now there's a thought. In fact the resemblence is quite remarkable, yep, I think we are on a winner here. :D

[Ken Borough]

Sorry Teresa, one cannot agree. Sir Les has some class and finesse about him, not to mention a certain physical presence! :}:p

[rodchucker]

Here we go guys, Teresa is on a roll of absolute wisdom (as usual).
If some can use journo mates for their own purposes, I say lets all rise to the occasion ( a bit like Sir Les I guess) and let us do the same.

Lets start flogging our friendly journo's and PPRUNE to launch a FOG for the future campaign and place him where we think his talents can be best used.

Surely there must be some worthwhile purpose out there where his corporate, negotiating and interpersonal skills can be used for the good of mankind. Sorry I am bit lost for ideas, but wiser ones would no doubt have greater wisdom than me.

Over to you!!!

[Lodown]

Somalia? Negotiating higher ransoms?

[Flyingblind]

PR adviser to Gary Glitter?

I hear both have practiced Innuendo over the years.

[blow.n.gasket]

House Master at a home for wayward pregnant secretaries.:ok:

[Pinky the pilot]

Firing circuit tester at an Al-Qaeda bomb making factory.:eek:

[teresa green]

Hmmm, I know, seeing he was so kindly going to hand over every cent to our indigenous brothers lets nominate him for (Drum roll)...................MAYOR FOR WADEYE/PALM ISLAND! now where did I read something about "white trash"???:D:D

[Angle of Attack]

A squeak of a rumour I heard today that there may be some initial investigations being made into the whole APA matter (by authorities) as from 2 weeks ago, nothing official yet. Maybe a little ploy by FOG to show a hint of remorse??! I say a hint!........ literally! Anyway time will tell..:)