The CEO and managing director of Australia Post, Ahmed Fahour, has resigned following controversy over his US$4.3m salary, despite the national carrier reporting a robust profit increase.
Fahour, who has served as MD for Australia Post for seven years, tendered his resignation at Australia Post’s board meeting this week.
He is widely credited with turning around the fortunes of the government-owned postal operator. However, it was revealed earlier this month, after a request from the Australian Senate, that he earned US$4.3m last year, ten times more than Australian Prime Minister Malcolm Turnbull.
The size of Fahour’s salary was heavily criticized by Australia Post customers via social media, union leaders and Turnbull himself. The Prime Minister was reported as saying that the remuneration package was “too high”.
John Stanhope, chairman of the Australia Post Board, said, “Ahmed’s decision to resign provides opportunity for a new leader to continue the development of Australia Post into a leading international e-commerce player.
“Ahmed was appointed at a time when [Australia] 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 e-commerce business. It was the right strategy. It has put Australia Post on a pathway to a sustainable future and avoiding a taxpayer bailout.
Australia Post’s revenue and profits from the parcels business has more than doubled during the last seven years. Australia Post’s revenue and profits from the parcels business has more than doubled during the last seven years. The parcels and e-commerce side of its business generates more than 70% of its profit.
February 23, 2017