Ahmed Fahour has resigned as CEO and managing director of Australia Post effective July, following controversy over his $5.6 million pay package in 2016.
Andrew Macaulay, CEO of Printing Industries, said members are 'delighted' at Fahour's resignation, which was tendered at a meeting of the Australia Post board on Wednesday, calling it 'about time'. "Ahmed Fahour’s strategies did an enormous amount of damage to an innovative, competitive and entirely entrepreneurial printing and mailing sector. The reset of having a new CEO will give the industry a chance to engage with the two relevant ministers and the new leader in a way that is conducive to employment and productivity. Fahour took the view that he did not need to negotiate, consult or even meet with his single biggest customer – the printing industry, which provides pre-sorted business mail," Macaulay said, adding that this is 'a fantastic day' for both Australia Post and the printing industry.
Revelations that Fahour was paid $5.6 million last year sparked outrage from the industry, and prompted Prime Minister Malcolm Turnbull to call John Stanhope, chairman of the board at Australia Post, on February 8 to express his concern that the remuneration was 'too high'. "The company has been able to improve its position but in my view - I say this as someone who has spent most of his life in the business world before I came into politics - I think that is a very big salary for that job," the Prime Minister told reporters.
In a statement, John Stanhope said the move will allow a new CEO to continue developing Post into a leader in international e-commerce. "By any measure, Ahmed has done an astounding job in transforming the business. When he started, he was set the challenge to 'write the next chapter in the history of Australia Post' – and he certainly rose to that challenge," Stanhope said.
Stanhope praised Fahour's decision to refocus Australia Post away from letters and towards parcels and e-commerce. "Ahmed was appointed at a time when Post was still highly dependent on revenue from the letters service, but the community's use of letters had already peaked and was in the early stages of decline. He led the team that developed an entirely new strategy focused on investing in the parcels and eCommerce business. It was the right strategy. It has put Australia Post on a pathway to a sustainable future and avoiding a taxpayer bailout," he said.
Australia Post will begin the search for Fahour's replacement immediately, and the board is expected to make an announcement within the next few months.