Qantas Airways (ASX:QAN) Ltd shareholders have joined the company’s pilots in calling for chair Richard Goyder’s resignation while putting the rest of the board on notice.
The airline has dropped 3.95% to $5.11 over the past five trading days.
Spearheading the opposition against Goyder is the Australian Shareholders' Association (ASA), which represents retail organisations and makes up about 10% of the airline’s shareholding.
The ASA contends that the legal action by the Australian Competition and Consumer Commission (ACCC) concerning ghost flights, a High Court decision on unlawfully terminated employees and the repercussions of Qantas' substantial payout to former CEO Alan Joyce should serve as sufficient catalysts.
"We think it's time for [Richard] Goyder to step down," ASA chief executive Rachel Waterhouse told The Business.
"Richard Goyder is just one of the board members, and he is the first among equals as far as being the chair."
Last week, Goyder claimed to have the backing of shareholders and the Qantas board.
"The latest read I've got on that is that people want me to continue to do the role, and I think I'm well suited to do it," he told The World Today.
"Shareholders are very supportive of the work we're doing now, of the new CEO and certainly of me."
Waterhouse, however, disagreed.
"What I've been hearing from retail shareholders [is] that change is required and that Richard Goyder should step down.
"That dialogue has been changing over the last few weeks as more issues came to light but it's clear there is a leadership change required.
"So many facts have come to light which question the ability to oversee the CEO and the management team and the questions around the timing of a payment of Alan Joyce's share sale, and that is a concern to retail shareholders."
Waterhouse put the rest of the board, which consists of new CEO Vanessa Hudson, Maxine Brenner, Jacqueline Hey, Belinda Hutchinson, Michael L'Estrange, Doug Parker, Todd Sampson, Heather Smith and Antony Tyler, on notice.
"The board have made a decision around the CEO … now they need to reflect on what they knew, at what time, what was appropriate, and the risks that they oversight," she said.
"The board does need to contemplate themselves, and the skills required for the future."
Rising up
According to Waterhouse, the airline’s new CEO should also be careful. While her position isn’t untenable, legal challenges facing the airline could have an impact on her tenure.
"Particularly around the ACCC allegations … and what she may have known at that point in time," Waterhouse said.
Waterhouse warned a first strike against directors' remuneration at Qantas' November AGM could be on the cards.
While the ASA is the first major shareholder group to comment, it may not be the last.
While the Australian Council of Superannuation Investors (ACSI), which represents major superannuation funds that hold Qantas shares, is yet to take a public stance, it is seeking clarity and greater accountability, particularly over the illegal sacking of workers.
ACSI, in collaboration with public sector investors such as Future Fund, reportedly holds a stake exceeding 20% in Qantas' shares.
The ASA and ACSI join Labor Minister Bill Shorten and Greens leader Adam Bandt in calling for Goyder’s resignation.
Qantas will hold its annual general meeting for shareholders in Melbourne on November 3.