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AUGUST 24th - QANTAS

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Old 21st Aug 2011, 00:32
  #541 (permalink)  
 
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Individual & group email lists
Here's an email list for all member of the House of Reps (with the exception of Gillard, she has a web based email HERE).
I will follow up with the Senate list in time.

This email list is in two parts, the first is a straight list, to send individual emails. The second is all the members in the correct group email format - simply cut and paste the entire thing into you TO field.
(please post if this fails due to errors, please let me know & I'll correct it. Note: group email format is as follows
Recipient Name <valid email address>, Next recipient <email address>, )

List 1 House of Representative Individual list

List 2 Complete House of Representative members list group email Cut and paste below directly into TO field of your email:

edit: Based on Take Five's info below, you may get an ISP lockout (it thinks your a spammer) if you send all recipients at once, I have now edited the list into groups of approx 20, you can either forward your original email, or cut and paste it with the new recipient list.



Abbott The Hon Anthony John <[email protected]>,Adams The Hon Dick Godfrey <[email protected]>,Albanese The Hon Anthony <[email protected]>,
Alexander Mr John Gilbert <[email protected]>,Andrews Mrs Karen Lesley <[email protected]>,Andrews The Hon Kevin James <[email protected]>,Baldwin The Hon Robert Charles <[email protected]>,Bandt Mr Adam Paul <[email protected]>,
Billson The Hon Bruce Fredrick <[email protected]>,Bird Ms Sharon Leah <[email protected]>,Bishop The Hon Bronwyn <[email protected]>,Bishop The Hon Julie Isabel <[email protected]>,Bowen The Hon Chris Eyles <[email protected]>,Bradbury The Hon David John <[email protected]>,Briggs Mr Jamie Edward <[email protected]>,Broadbent Mr Russell Evan <[email protected]>,Brodtmann Ms Gai Marie <[email protected]>,Buchholz Mr Scott <[email protected]>,Burke Ms Anna Elizabeth <[email protected]>,Burke The Hon Anthony Stephen <[email protected]>,




Butler The Hon Mark <[email protected]>,Byrne The Hon Anthony Michael <[email protected]>,Champion Mr Nicholas David <[email protected]>,Cheeseman Mr Darren Leicester <[email protected]>,Chester Mr Darren <[email protected]>,Christensen Mr George Robert <[email protected]>,Ciobo Mr Steven Michele <[email protected]>,Clare The Hon Jason Dean <[email protected]>,Cobb The Hon John Kenneth <[email protected]>,Collins The Hon Julie Maree <[email protected]>,
Combet The Hon Gregory Ivan <[email protected]>,Coulton Mr Mark Maclean <[email protected]>,Crean The Hon Simon Findlay <[email protected]>,Crook Mr Anthony John (Tony) <[email protected]>,Danby Mr Michael <[email protected]>,D'Ath Mrs Yvette Maree <Yvette.D'[email protected]>,Dreyfus The Hon Mark Alfred <[email protected]>,Dutton The Hon Peter Craig <[email protected]>,Elliot The Hon Maria Justine <[email protected]>,Ellis The Hon Katherine





<[email protected]>,
Emerson The Hon Dr Craig <[email protected]>,Entsch The Hon Warren George <[email protected]>,Ferguson Mr Laurie Donald <[email protected]>,Ferguson The Hon Martin John <[email protected]>,Fitzgibbon The Hon Joel Andrew <[email protected]>,Fletcher Mr Paul William <[email protected]>,
Forrest Mr John Alexander <[email protected]>,Frydenberg Mr Joshua Anthony <[email protected]>,Gambaro The Hon Teresa <[email protected]>,Garrett The Hon Peter Robert <[email protected]>,Gash Mrs Joanna <[email protected]>,
Georganas Mr Steven (Steve) <[email protected]>,Gibbons Mr Stephen William <[email protected]>,Gray The Hon Gary AO <[email protected]>,Grierson Ms Sharon Joy <[email protected]>,
Griffin The Hon Alan Peter <[email protected]>,Griggs Mrs Natasha Louise <[email protected]>,Haase Mr Barry Wayne <[email protected]>,
Hall Ms Jill Griffiths <[email protected]>,




Hartsuyker Mr Luke <[email protected]>,Hawke Mr Alexander George <[email protected]>,Hayes Mr Christopher Patrick <[email protected]>,Hockey The Hon Joseph Benedict <[email protected]>,Hunt The Hon Gregory Andrew <[email protected]>,
Husic Mr Edham Nurredin (Ed) <[email protected]>,Irons Mr Stephen James (Steve) <[email protected]>,Jenkins Mr Harry Alfred <[email protected]>,
Jensen Dr Dennis Geoffrey <[email protected]>,Jones, Mr Ewen Thomas <[email protected]>,Jones Mr Stephen Patrick <[email protected]>,
Katter The Hon Robert Carl <[email protected]>,Keenan Mr Michael <[email protected]>,Kelly Mr Craig <[email protected]>,Kelly The Hon Dr Michael <[email protected]>,King The Hon Catherine Fiona <[email protected]>,Laming Mr Andrew <[email protected]>,
Leigh Dr Andrew Keith <[email protected]>,Ley The Hon Sussan Penelope <[email protected]>,Livermore Ms Kirsten Fiona <[email protected]>,Lyons Mr Geoffrey Raymond <[email protected]>,




Macfarlane The Hon Ian Elgin <[email protected]>,Macklin The Hon Jennifer Louise <[email protected]>,Marino Ms Nola Bethwyn <[email protected]>,Markus Mrs Louise Elizabeth <[email protected]>,Marles, The Hon Richard Donald <[email protected]>,Matheson Mr Russell Glenn <[email protected]>,McClelland The Hon Robert <[email protected]>,McCormack Mr Michael Francis R <[email protected]>,Melham Mr Daryl <[email protected]>,
Mirabella, Mrs Sophie <[email protected]>,Mitchell Mr Robert George <[email protected]>,Morrison, Mr Scott John <[email protected]>,
Moylan The Hon Judith Eleanor <[email protected]>,Murphy The Hon John Paul <[email protected]>,Neumann Mr Shayne Kenneth <[email protected]>,Neville Mr Paul Christopher <[email protected]>,Oakeshott Mr Robert James <[email protected]>,O'Connor The Hon Brendan <Brendan.O'[email protected]>,O'Dowd Mr Kenneth Desmond <ken.o'[email protected]>,O'Dwyer Ms Kelly Megan <[email protected]>,
O'Neill Ms Deborah Mary (Deb) <deborah.o'[email protected]>,





Owens Ms Julie <[email protected]>,Parke Ms Melissa <[email protected]>,Perrett Mr Graham Douglas <[email protected][/email]>,Plibersek The Hon Tanya Joan <[email protected]>,Prentice Mrs Jane <[email protected]>,
Pyne The Hon Christopher <[email protected]>,Ramsey Mr Rowan Eric <[email protected]>,Randall Mr Don James <[email protected]>,
Ripoll Mr Bernard Fernando <[email protected]>,Rishworth Ms Amanda Louise <[email protected]>,Robb The Hon Andrew John AO <[email protected]>,Robert Mr Stuart Rowland <[email protected]>,Rowland Ms Michelle Anne <[email protected]>,Roxon The Hon Nicola Louise <[email protected]>,Roy Mr Wyatt <[email protected]>,Rudd The Hon Kevin Michael <[email protected]>,Ruddock The Hon Philip <[email protected]>,Saffin Ms Janelle Anne <[email protected]>,
Schultz, Mr Albert John (Alby) <[email protected]>,Scott The Hon Bruce Craig <[email protected]>,Secker Mr Patrick Damien <[email protected]>,






Shorten The Hon William <[email protected]>,Sidebottom Mr Peter Sid (Sid) <[email protected]>,Simpkins Mr Luke Xavier Linton <[email protected]>,Slipper The Hon Peter Neil <[email protected]>,Smith The Hon Anthony David <[email protected]>,Smith The Hon Stephen Francis <[email protected]>,Smyth Ms Laura <[email protected]>,Snowdon The Hon Warren <[email protected]>,Somlyay The Hon Alexander <[email protected]>,Southcott Dr Andrew John <[email protected]>,Stone The Hon Dr Sharman <[email protected]>,Swan The Hon Wayne Maxwell <[email protected]>,Symon Mr Michael Stuart (Mike) <[email protected]>,Tehan Mr Daniel Thomas (Dan) <[email protected]>,Thomson Mr Craig Robert <[email protected]>,
Thomson Mr Kelvin John <[email protected]>,Truss The Hon Warren Errol <[email protected]>,Tudge Mr Alan Edward <[email protected]>,
Turnbull The Hon Malcolm Bligh <[email protected]>



,Vamvakinou Ms Maria <[email protected]>,Van Manen Mr Albertus <[email protected]>,Vasta Mr Ross Xavier <[email protected]>,Washer Dr Malcolm James (Mal) <[email protected]>,Wilkie Mr Andrew Damien <[email protected]>,
Windsor Mr Antony Harold <[email protected]>,Wyatt Mr Kenneth George AM <[email protected]>,Zappia Mr Antonio (Tony) <[email protected]>,
Last edited by breakfastburrito; 21st Aug 2011 at 01:04.
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Old 21st Aug 2011, 00:33
  #542 (permalink)  
 
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47% of Qantas staff are managers.

Like the old saying goes too many chiefs not enough Indians.
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Old 21st Aug 2011, 00:38
  #543 (permalink)  
 
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Thanks for the list BB.

The other night at a busy asian port on the main control frequency we were told 'Good luck boys, we're all behind you'.

Doesn't mean much in real terms, but it was greatly appreciated. Thank you to whoever it was.
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Old 21st Aug 2011, 00:51
  #544 (permalink)  
 
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Beware of Spamming Lockouts
Thanks for the list BB.

I sent an email the other day to about 100 senators and after this my ISP (optus) locked my email account.
I could receive emails but could not send them.
When I contacted customer service they said that I had sent it to too many recipients and was flashed to their system as spam.
It took about 4 hours before they could fix it from India or wherever they were.

In the end they suggested splitting the list into groups of 20 and after this I have had no more problems.
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Old 21st Aug 2011, 00:52
  #545 (permalink)  
 
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Do not personalize this as a purely "Anti-Joyce" campaign. That sells your own cause short and demonizes one when the root causes of the malaise are multi-faceted and complex.

A few milestones along the way to where Qantas (in particular) is now probably could usefully start with the Menzies government decision not to get behind Victa and its wonderful Air Tourer in the early 60's. Fast forward to Strong's decision (backed by government) not to do the A300B4 heavy maintenance in Australia and to fire all those apprentices. Then onto Hawke/Keating decisions not to build the second Sydney airport.

These are but a few little photo opportunities on a long journey.

The journey itself, since probably the late 70's has been one where the whole of Australian industry and the political climate has been toward abandonment of a decent secondary industry policy (who remembers "Australia Reconstructed"? in the 80's) and a "Less Tax is Always Better" Keating led race downwards to the populist vote that has gutted university and TAF spending, research etc. Add to that in our aviation world the lies and misinformation as DCA was gradually broken into constituent parts and the "User Pays" world came with promises by Hawke/Keating that core safety would be funded by the tax payers and never compromised. Then the world of corporatization and privatization which though potentially positive, was again done in many cases at the wrong times and for the wrong reasons. Complicit in this was the ACTU as, before our very eyes, the unconstitutional "Corporate State" grew and prospered. The 1989 dispute was a symptom of this, not an isolated event. Remember Hawke had a phone on his desk that only 3 people could call 24/7: Abeles, Murdoch and Kelty?

(I have mentioned Jonathan Raulston Saul before on these boards-Google that name and read books like "The Unconscious Civilization"....nothing new, just applied common sense and reality)

Then against this background add the "It can't happen to us" myopia of earlier QF pilots in leaving AFAP and turning their back on Impulse. The final demise of Ansett and Australian, already gutted in 1989 as ideologue management refused to address reality, the carcass of Australian going to Qantas as Ansett mis-managed its way to oblivion. All along the way a slick QF lobbying machine in the media (remember Jones and Laws “Cash for Comment”) and Canberra ensured that middle and senior management would always be protected, hard decisions avoided.

So Qantas never really broke free of the old paradigms. Look at ratios such as ASKs flown per real dollar of labour cost. Seats in the sky per employee. Layers of management per port served. Horrific! Just no identifiable brake with the past. Huge advances in technology and efficiency were squandered as department budgets and executive suites grew to soak up the surplus. Just look at the figures in the yaer by year Annual Reports on the QF website and you’ll see this tragic case of “Steady as she goes” in a world where change was the norm in every area but the Qantas Boardroom.

We too have been complicit. Listening to conspiracy theories, “Ansett was just fine and we wuz robbed”, "Jetstar is a problem not a solution", tolerating amateurism and adventurism(how could the old DCA ever have even countenanced a Dick Smith era?), avoiding solidarity, in a thousand subtle ways promoting a “me first” mentality. Believing that our own way of doing things was so special. How many AIPA check and training captains supported (by action or inaction) the demise of proper risk assessment processes in Flight Ops? How many individuals along the way supported the hideous QF pilot recruitment and internal transfer regime with its dark Orwellian overtones of “All pilots in the Group are equal but some are more equal”? How many questioned why it could be that a senior check captain on the Dash 8 could be paid less than a 747 S/O? or that indeed that senior check captain did not as a right, have the chance to qualify as an S/O if desired? This was long before Joyce remember.

How many of us failed to see that the price sensitive share of the markets was growing, in absolute and relative terms. That the old full service world was no longer appropriate and that hated or not, blue singlet travellers were here to stay. These boards here on Prune have had much rhetoric but little cold hard reality. Jetstar domestic may have been poorly sold to the Group, and management motives often hidden and devious, but it was a very necessary evil. Without it the Group would have been drowned in a sea of red ink years back. It could and should have been done better, with inclusiveness, explanation, trust and engagement, but the “do nothing” option meant corporate death.

Similarly, a relatively small amount of analysis will show that the Group decision not to build a new paradigm with a significant 777 fleet, as late as yesterday and as far back as 10 years ago, is probably the single greatest self-induced disaster in the Group’s 90 year history. If “Bench Marking” has ever meant anything it should have told government that protection was harming Qantas by allowing such things, not helping it. In fact of course this advice on the negative effects of protection for Qantas has often been given to Government but swamped by a slick Qantas lobbying effort “Give us more competition but not just yet”.

Yes by now, if not before, some readers are already turning red and reaching for their own “Reply” button. To bucket Sherm. But as front seat professionals it never hurts to look at inconvenient truths. You have a chance now, before things get even worse, to look at things as they are and need to be, not just nostalgically focus on the past.

No doubt many in Ansett/Australian management and as well in the AFAP, would give anything to have these few days before August 24, 1989 back again. Well as Davies said in “Handling the Big Jets” (paraphrased) in “Handling the Big Jets”…..”If you mess it up and go off the end of the runway and survive, you will say to yourself “what wouldn’t I give to have those last 30 seconds back again”. Well as you cross the threshold you have that option. Go-round, delay, divert-all are better options than disaster”

Well as August 24 approaches you do have that chance. Don’t waste it by focusing on one person or one set of decisions. There are real opportunities ahead. Hating Joyce, or Jetstar, or contracts, or Asian expansion is a distraction, not an answer.

Get behind a competition (like the Submarine programme competition) for city/state bids for a 767 heavy maintenance, refurbishment and winglet programme to get a top-class Cityflyer product in the skies for the next 5-7 years until enough A330 and 787s can take over. Imagine what that sort of work would do for the economy of Adelaide or Newcastle.

As a matter of urgency, whether QF management like it or not, blacklist all outside pilot recruitment into any part of the group while there are redundancies anywhere within the group. If that means check and training captains have to resign their duties so be it. This is something you could do with less anguish than a fully-fledged strike or drawn out industrial campaign. You may have to tolerate contracts etc in the short term but at least you would have internal unity. And public support too.

As for the 777…..it is never too late to get something right. The 777-300ER and -200LR and 777F (and new developments in the pipeline) will be produced for years yet. If you want to lobby the board, this is the centre of gravity. If you need to contemplate and offer a new Group wide EBA to get that fleet under way, so be it. Inconvenient truth is that neither a future 777 fleet nor a 787 fleet will ever be flown on the long-haul EBA, whatever AIPA’s dreams are.

Sorry this diatribe has gone on. I’ll stop now and just urge you all to take off the rose-coloured glasses, see the true nature of the ills that beset you and de-personalize your fight. History is full of folks who wanted to slay dragons. But history is made by cold eyed realists who identify real challenges and focus their energies and enthusiasm.

I wish you well. If you don't like my thoughts, ignore them. I don't need the vitriol as I once again contemplate the costs, joys, opportunities and challenges in my own life in the 22 years since 1989.
Last edited by Captain Sherm; 21st Aug 2011 at 13:30.
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Old 21st Aug 2011, 00:56
  #546 (permalink)  
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Duty
"Duty should always be to the public and the passengers, not to the shareholders." - Hudson Fysh
Southern Skies

Today that position is under pressure in all areas of industry. I suspect that with the current shambles of QF's vision, that they fail in all respects; public/passengers and shareholders are all being messed with by the Poisoned Dwarf's vision.Public of AUS are being rolled, passengers are getting a brown paper bag program, and the investors are seeing the share price tumble...

The current headline is that the pilot union and presumably others are calling for the removal of the dwarf. The malaise in QFA extends far further. All of the upper management that have sat around sagely nodding at the emperor and failed to tell him that his clothes had been downsized (rightsized?) to invisibility (much like QFA) and have not acted to protect the shareholder value, company, passenger and public interests need to go. The culture of acquiescence to bad behaviour by management in QFA needs to be cleansed. Even the implementers of the frequently used legal instruments for quieting dissent need to be removed, they are cancerous to good management practices.

The QF 2010 interim report indicates that QFA and Jetstar spend about the same on aircraft leases, whereas QFA has massive depreciation on assets. A point of interest is that the Jetstar leases are pretty darn good.... in fact really good, around half the cost (or less) of what we get in this industry other than for apparently Jetstar. Good business if you can get it....

Of course... depreciation is a two edged sword as well... in the case of QFA where there is no replacement of the asset, it is hard to see where the "loss" truly occurs... it is not like the poisoned dwarf is intending to replace any of these assets for QFA, only for the Jetstar fleet. On top of that, the "investment" of 1.6B, which is made by QF mainline on aircraft is for what aircraft? apparently most of these are in fact Jetstar aircraft, if it includes the B787... or Airbus products. The books supposedly include all of the existing QFA fleet as it has been allowed to develop to, ie it already includes the A380's (and the last ones have been "deferred" presumably to be turned into prettier A320's for Jetstar in due course if management has it's way).
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Old 21st Aug 2011, 01:56
  #547 (permalink)  
 
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From the Qantas Sale Act:

(e) prohibit Qantas from taking any action to bring about a change of its company name to a name that does not include the expression “Qantas”; and
(f) prohibit Qantas from conducting scheduled international air transport passenger services under a name other than:
(i) its company name; or
(ii) a registered business name that includes the expression “Qantas”; and
(g) require that the head office of Qantas always be located in Australia; and
(h) require that of the facilities, taken in aggregate, which are used by Qantas in the provision of scheduled international air transport services (for example, facilities for the maintenance and housing of aircraft, catering, flight operations, training and administration), the facilities located in Australia, when compared with those located in any other country, must represent the principal operational centre for Qantas; and
(i) require that, at all times, at least two‑thirds of the directors of Qantas are to be Australian citizens; and
(j) require that, at a meeting of the board of directors of Qantas, the director presiding at the meeting (however described) must be an Australian citizen; and
(k) prohibit Qantas, at all times, from taking any action to become incorporated outside Australia.
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Old 21st Aug 2011, 02:56
  #548 (permalink)  
 
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One other point. Since the beginning of Qantas, the govt. has had the right to induct Qantas and crews into service on the possibility that Australia be under threat from extreme WX (eg Cyclone Tracy where QF was brought in to fly survivors out), unknown or known invaders of our shores, where QF can be used as a troop carrier, or to carry arms and supplies to our armed forces if required. Do we now have to wait for a A/C to be dispatched from BKK to do the job, as there would be few available on the ground here, or do we hope that Borgetti's mob will take up the slack, or that JQ will answer the call? One would hope none of these events happen, but the possibility of the WX causing mayhem and possibly death is always on the cards. Your answer Mr. Joyce?
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Old 21st Aug 2011, 02:57
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That's what I would have thought c173. I have spent the morning emailing politicians.
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Old 21st Aug 2011, 03:49
  #550 (permalink)  
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Hi Sherm,

your comments are appropriate, however the mechanisms that exists for anyone other than management to fix the problem is limited in subtlety, and the timeframe precludes working out elegant solutions. What is needed is such action that allows the program to be adjusted with some semblance of cohesion with all concerned.

The AJ solution of killing QFA and replacing the corpse with a foreign airline is disturbing. I could contend that the Jetstar form of management (which you are familiar with) is hardly conducive to excellence.

If the AJ solution made sense at any level, I would be far more accepting of what is being done to QFA, however, do you consider that it is likely that the magic of Jetstar's product and management will be able to survive in the SIN environment, using a narrow aisle "premium" product vs B777's in abundance in the local market?
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Old 21st Aug 2011, 04:13
  #551 (permalink)  
 
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Capt.Sherm is Correct
I mentioned this earlier:"Joyce is the patsy"
It is the board and Chairman Clifford who are behind this.
Joyce can do nothing without the approval of the board
By pass Joyce and bombard the board.
They are getting a very easy ride with this
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Old 21st Aug 2011, 06:32
  #552 (permalink)  
 
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yes fdr - in the Asian market nobody likes narrowbodies. This is why SQ does not operate them, and sends 777s to BKK, CGK and HKG. CGK has a flying time of 80 minutes and is flown 8 times a day with a 332-seat 773.

QF refuses to invest in its longhaul product, but instead wants to put a "better lie flat J product" and a "better Y product" in it's (presumably) SIN-based A320 startup. SERIOUSLY?!

I fly regularly from SIN to various regional destinations. SQ rapes you with their pricing ex SIN despite the myriad of competition from the LCCs. No it's not because they give you a full meal on a 80 min flight, but it's because they have the frequencies. If QF's new airline can't get 8 flights a day to CGK and KUL, 7 flights a day to HKG and 4 a day to Shanghai, nobody from the business community is even going to consider them. Oh, and at least SQ can get you from Beijing to SIN at the relatively sane hours of 8.45am, 4pm and midnight. The 0250 Jetstar departure is just ridiculous. Even if they had a lie flat product.

Sounds like OZJET in the making.
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Old 21st Aug 2011, 06:52
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Joyce doesn't understand iconic brand | thetelegraph.com.au



Given the external challenges facing Qantas, shareholders cannot afford a leader who believes shrinking the network and shifting resources to Asia is the way to win back lost customers and profits.

Shareholders cannot afford a leader who twists the airline’s numbers to obscure the value in the Qantas brand in order to justify ill-advised forays into an unpredictable market.

In essence, shareholders must now ask themselves: can they afford Alan Joyce?

To reject Mr Joyce’s strategy is not – as he has suggested – to reject change.
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Old 21st Aug 2011, 08:20
  #554 (permalink)  
 
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He is desperate to ram a square-shaped strategy into a hole that is obviously round. The parallels to Sol Trujillo and Telstra are unavoidable.
Exactly, Joyce will be kicked out very soon, but we need to go for the Carotid Artery, a fatal blow to the Board with Clifford the main target. He is behind this mess and a vote of no confidence (which is being organised now), I cant help but feel that QF management have already lost this battle and they are about to be routed. Bring it!
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Old 21st Aug 2011, 08:44
  #555 (permalink)  
 
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Well, as you suggested Sherm, and with all due respect...

...I think most of us will ignore that rubbish you wrote!

I guess by now you've done the same?
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Old 21st Aug 2011, 09:37
  #556 (permalink)  
 
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So this would make Jetstar illegal? From the Qantas Sale Act:

Quote:
(e) prohibit Qantas from taking any action to bring about a change of its company name to a name that does not include the expression “Qantas”; and
(f) prohibit Qantas from conducting scheduled international air transport passenger services under a name other than:
(i) its company name; or
(ii) a registered business name that includes the expression “Qantas”
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Old 21st Aug 2011, 09:50
  #557 (permalink)  
 
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Amos 2

I always knew a time would come when with one or two wise words from someone such as yourself I would see the error of my ways and depart these boards for good.

Thanks

And good luck.
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Old 21st Aug 2011, 11:10
  #558 (permalink)  
 
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Joyce on Sky news
Joyce about to appear on Australian Agenda on Sky News.
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Old 21st Aug 2011, 12:28
  #559 (permalink)  
 
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Thanks Capt. Sherm.
Great read.
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Old 21st Aug 2011, 15:16
  #560 (permalink)  
 
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A word about what Boards do and what the CEO does from one who has had a go at that game:

The Board is there to protect the interests of the shareholders - ALL the shareholders, that is its duty.

It does this by doing Two things; enforcing standards of corporate governance and appointing and monitoring the performance of the CEO.

Corporate governance is about how the company is managed - who in management gets to make decisions and how they make and implement them so as to safeguard the assets of the shareholders. This is reasonably straight forward and is receiving a lot of attention in Australia these days.

What people often don't understand is that the Board does not make the decisions about how the company is run. They hire a CEO to do that. The CEO develops the strategy and presents it to the Board. The Board either likes it, or fires the CEO and finds a new one, the Board does not participate in the running of the company.

At a Board meeting, apart for the usual crap about minutes and statutory stuff, the real action begins when the Chairman asks the CEO (who is "in attendance" if not a Director) to take the Board through her report. That report details progress against the approved strategy, significant new events and major decisions the CEO has taken.

The CEO does not ask the Board to take his decisions for him, the Board simply looks at the decisions he has taken, perhaps questions him about how he has arrived at certain decisions taken or forthcoming, mulls his report amongst themselves and either accepts it or rejects it. If his report is rejected he finds himself fired or he resigns. That is why CEOs get paid so much; you are working at the pleasure of the Board. You can be removed any time for any reason, even such thing as a big shareholder deciding that they don't like you personally.

To put that another way, the CEO doesn't ever get to claim "unfair dismissal" (maybe claim non adherence to contract terms though).

Anyway, don't attack the Board about the way the company is run, attack it if you like about destruction of shareholder value or assail it about Corporate Governance because that is their proper concern.

Of course the Board, or most members of it, must approve of the Direction the CEO is taking the company, or they wouldn't have hired him and approved the strategy. The question for the Board is that if they believe that the corporate strategy needs to change, is the present CEO capable of making that change or is a new CEO required?

The deeper question for individual Board members is whether they are happy to remain on a Board if they don't like what is occurring and can't change it? The personal and legal consequences of failing to protect shareholder assets are extreme.

My own opinion of the Qantas Board is better left unsaid.
Last edited by Sunfish; 21st Aug 2011 at 15:30.
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