Ahmed Fahour is stepping down as CEO of Australia Post.
He tendered his resignation two weeks after prime minister Malcolm Turnbull criticised Fahour’s $5.6 million pay packet.
Chairman John Stanhope says Fahour has done an outstanding job in transforming the business and avoiding a taxpayer funded bailout.
“Ahmed’s decision to design provides opportunity for a new leader to continue the development of Australia Post into a leading international ecommerce player,” Stanhope says.
Stanhope says Fahour was appointed at a time when Australia Post was still highly dependent on revenue from letters 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,” Stanhope says.
“It was the right strategy. It has put Australia Post on a pathway to a sustainable future and avoiding a taxpayer bailout.”
Fahour’s pay was said to the biggest salary ever paid to an Australian public servant. He got a $4.4 million salary and $1.2 million bonus last financial year.
“I think that salary, that remuneration is too high,” Turnbull said when he found out.
The next highest pay packet for a government business in NBN boss Bill Morrow with $3.6 million. The median pay for a CEO of a top 100 listed Australian company last year was $1.72 million.
Fahour, who has been at Australia Post for seven years, will depart in July.
Stanhope says the board will start the search for a new CEO immediately.
Australia Post today announced a before tax profit of $197 million for the six months to December, as domestic parcel volumes grew 5.7%.
Business Insider Emails & Alerts
Site highlights each day to your inbox.