Crikey, Pemberton Strong’s article on Qantas yesterday once again raises some very interesting points which others fear to raise.
The Boston Consulting Group (who have conservatively made over $100 million in revenue through advising Qantas) calls the need to cut out 3,000 jobs the “Circumcision Principle” – you cut off 10% but it still works the same! Geoff gets sucked into these overtures on a regular basis especially when someone at Board level draws his attention to the fact that staff numbers have increased X% over Y months and demand answers as to why?
There is an interesting relationship between chairman Dame Margaret Jackson and Geoff. The Dame remains hidden while Geoff does the dirty work and then she looks good at AGM time by yet again announcing vastly improved profits. Immediate past Qantas chair Gary Pemberton was much braver than Margaret and would face the media on a regular basis to give honest factual replies to some very hard questions.
Not our own Dame though. She continues to push obscene bonus packages for Geoff through the Board while at the same time building a positive view of her leadership for the share market. Will be interesting to see who takes over the reins from Geoff as the ongoing rumour is that finally after so many years of professing to know how to run a major corporation, albeit as a board member, Dame Margaret is hell bent on running Qantas as CEO! Could it be the $6 million per year package or some other ultruistic motive?
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One waits however for Dixon to find a new jingle for Qantas as “I still call Australia Home”, when another 3,000 jobs are chopped and the 7,000 jobs go offshore make such a claim totally inappropriate if not hypocritical. Come to think of it Geoff and John Singleton haven’t come up with anything new for over 5 years!