The chairman of the Qantas Group will step down ahead of the 2024 annual general meeting, ending speculation about his position following a series of major missteps by its primary airline, Qantas (QF, Sydney Kingsford Smith), and questions about an apparent lack of board oversight.

Qantas made the announcement on October 11, saying the departure of Richard Goyder was in "recognition of the reputational issues facing the Group and to support restoration of trust in the company." Also heading out the door are longstanding board members Jacqueline Hey and Maxine Brenner. Michael L'Estrange announced earlier this year that he will step down from the board in November.

Perth-based Goyder, who is also chairman of petroleum exploration and production company Woodside as well as the Australian Football League (AFL), was appointed to the Qantas Group board in 2017 and took the chair's role in 2018. Notwithstanding this year's controversies, chairing the Qantas Group board is a highly sought-after prize among Australia's cabal of professional directors. However, Goyder has come under sustained criticism in recent months for his handling, or perceived lack of handling, of a series of significant issues during and after the pandemic that culminated in the recent early departure of CEO Alan Joyce.

Goyder's remaining tenure, likely to stretch for another 12 months assuming no further scandals engulf the airline, will give him time to headhunt a new chairperson and give Vanessa Hudson, the new Qantas Group CEO, time to settle into her role. In the meantime, Goyder will continue to collect his annual directors' fee of more than AUD650,000 Australian dollars (USD417,000), plus enjoy extensive travel benefits for his services. Hey and Brenner, who have sat on the board since 2013, will depart in February 2024.

“As a Board, we acknowledge the significant reputational and customer service issues facing the Group and recognise that accountability is required to restore trust," said Goyder, who says he has always sought to act in the best interests of the airline. “Qantas has gone through an incredibly difficult period since our operation was grounded during the pandemic. The recovery has not been easy, and mistakes were made. We again apologise for those times where we got it wrong."

In recent weeks, Goyder maintained that he had the support of major Qantas shareholders. However, many large shareholders were unimpressed with Goyder's explanation of why Joyce was allowed to sell AUD17 million (UAS10.9 million) worth of shares even though the airline knew a major scandal was about to break concerning the selling of seats on thousands of flights Qantas had already cancelled. Qantas shares have fallen about 25% since Joyce cashed out. There is also significant shareholder displeasure about whether the board can or will attempt to claw back some of the AUD14.4 million (USD9.24 million) in shares and bonuses due to Joyce when he stepped down from his role. Major shareholders, including superannuation funds and Australia's sovereign wealth Future Fund, reportedly told Goyder during recent meetings that they expected board-level accountability.

This week's announcement comes ahead of the late October 2023 Qantas Group AGM. The meeting was shaping up as the rowdiest and most highly anticipated event on Australia's corporate calendar this year. Offering themselves as candidates at the AGM under a board renewal banner are former American Airlines CEO Doug Parker, Hudson, and Heather Smith, a former senior public servant and current director on boards of the Australian Stock Exchange and the financial company Challenger.

Two current directors, Belinda Hutchinson and Todd Sampson, will stand for re-election at the AGM. According to an acerbic but well-informed Australia Financial Review columnist, Hutchinson will likely get re-elected, but Sampson, a high-profile marketing and advertising guru who failed to pick up on the catastrophic reputational damage coming to the Qantas Group this year, "will be carried out in a box."