In a significant development, Institutional Shareholder Services (ISS) has advised against the re-election of Qantas non-executive director Maxine Brenner to the Telstra board.
The recommendation stems from concerns over Brenner's governance record during her 10-year tenure on the Qantas board.
ISS has not raised issues with three other Telstra directors up for re-election.
"Material failures of governance"
The ISS report cited "material failures of governance, board and risk oversight, and fiduciary duties" during Brenner's time at Qantas.
It pointed to legal actions from the Australian Competition and Consumer Commission, High Court rulings on the illegal firing of 1,700 workers, and questionable remuneration practices as key concerns.
Brenner, who is also a member of the remuneration committee at Qantas, faced additional scrutiny for her directorship at Woolworths, where she chaired the remuneration committee.
Potential trouble
ISS Australia and New Zealand Managing Director of Research Vasili Kolesnikoff stated that the recommendations for the upcoming Qantas Annual General Meeting (AGM) would be released soon.
This advice spells potential trouble for other Qantas directors, including Todd Sampson and Belinda Hutchinson, who are up for re-election.
Further exacerbating issues for Qantas, a recent IT failure led to a significant disruption in freight services, leaving thousands of goods in limbo.
The fault mainly impacted Melbourne, Sydney, and Brisbane depots, with no quick resolution in sight. International Forwarders and Customs Brokers Association of Australia CEO Scott Carson remarked that Qantas is collaborating with industry stakeholders to address the crisis.
Despite the setbacks, Qantas aims to clear 75% of the freight backlog within the next 24 hours, as per a message to freight customers.
Carson, however, indicated that the disruption is among the most severe he has seen in nearly a decade in logistics.