Australia Post CEO Ahmed Fahour resigns.Your thoughts please?

Will we finally get our parcels delivery?
and in 1 piece too?

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Comments

    • So you don't wanna pay tax on your $5.6m? If you do so, then you're left with ~$2.85m. But still good enough!

  • +2

    I don't know what everyone is complaining about he donated millions of his salary to his Islamic "charities" /s

    Can't wait to see what his golden parachute is…

    • source?

      • +12

        The money was donated to the Islamic Museum of Australia

        "The founder and director of the museum is former Macquarie Bank executive Moustafa Fahour - Ahmed Fahour’s brother. Moustafa’s wife, Maysaa, is the chair­woman and director.

        The Fahours’ sister, MasterChef participant Samira El Khafir, is head chef and man­ages the cafe on site."

        http://www.heraldsun.com.au/news/australia-post-donates-boss…

    • probably just laundering money.. like in and out through different entity and avoiding tax.
      rich people are expert on those kind of actions

  • +8

    Can anyone think of his biggest achievement? I think it was not delivering every day to cut costs.

    • +4

      so if deliveries are only 3 out of 5 days, that means his pay should have also been cut by that amount along with the board who approved this decision.

    • Deliveries are everyday… well not weekends although there is some weekend delivery of parcels ar busy periods now.

      • +1

        You'd better tell the Sydney Morning Herald and others. "This super-slow snail mail was introduced by Australia Post on January 4 (2016), ostensibly to save money on overnight processing and planes"

        From Australia Post themself: "Delivery time for Regular mail: Our standard letter service takes a bit longer than before - an extra 1-2 business days in most cases. But it's still the most cost-effective option for non-urgent mail."

        How do you believe a letter can take 2 days longer to arrive. The truck speed limits haven't changed. They've gutted the supply chain/shifts to cut costs.

        • Its actually very simple how it happens, but if re-read the comment i was replying to, then re-read my comment, you'll learn that i was refuting that the amount of days deliveries are being made on has changed. Delivery every business day is mandatory, has not changed and will not change.

          And I'll explain it for you. So priority mail and regular mail the services you are referring to, are letters only, no parcels whatsoever. Parcels timetables had no change.
          Priority mail is sorted first.
          If all the current day's priority mail is sorted, then the current days regular mail is sorted. If there is insufficient time to sort all of the current days regular mail, it is held over to the next day then is sorted as priority.
          This change was both to cut the penalty rates night sorters were getting and to allow those who need their mail there faster can always have their mail sorted first. Business mail accounts for the vast majority of letters still sent so ahmed wanted to ensure we could give them more choice. This change was actually introduced over a year vefore but only for those who had business charge accounts with aust post. It was only made for all mail after senate approval and the communications ministers approval.

        • @snipeymcsnipesnipe:
          Delivery in a supply chain is not just the end postie.

          http://www.geelongadvertiser.com.au/news/geelong/geelong-tes…

          Maybe you can say each extra day is carefully gerrymandered by shaking a letter bin or whatever it takes to take 9 days to travel 7 kms, but I think the main issue is that a CEO is taking the soft option by reducing service levels and shouldn't be rewarded for doing the most obvious and lazy option of doing less. Would you reward a Woolworths CEO for the genius decision to stop nightstocking? Shelves would be empty and profits would drop…but that sort of service performance drop is acceptable in Australia Post.

        • @Frugal Rock: Did you read what i said? Also the link youve posted says 1 in the 48 they sent wasnt within the 3 days. So 47 were.
          It's not reducing service, its making it more cost effective and majority of mail users who are non business customers do not use priority mail.
          And your example of woolies really does not apply at all. Although if we were to try make it apply, well im sure the wooloes ceo wouldnt be firing all the night shelf stockers, be would simply be changing their shift to save on all the penalty rates. And maybe he would also upgrade their distribution warehouses with larger, newer, much more efficient machines to sort which branches the stock needs to go to (mail processing machines in case yiu cant get what i mean). So if you save money, keep the jobs, introduce better machines and facilities with the money you saved, how is that not a good job?

        • @snipeymcsnipesnipe:

          "(mail processing machines in case yiu cant get what i mean)"

          I do read the shill salad you have written. In a word, I'd describe it as 'phonetic'.

          "So if you save money, keep the jobs, introduce better machines and facilities with the money you saved, how is that not a good job?"

          We are right in the middle of approximately 2000 jobs being cut.

          http://www.smh.com.au/business/australia-post-slashing-jobs-…

          Has someone been offering you kool-aid?

  • +4

    I hope he forgets to leave a forwarding address.
    If his last pay packet goes astray, I won't be marking it return to sender.

  • +10

    Fantastic hes Gone, Fahour couldn't manage a lemonade stand Australia post is the worst and how could you get a $5.6 mil pay packet for such hopeless
    service and cutting jobs i couldn't sleep at night doing that but with earnings of $24 million over the past 5 years he sleeps well on a mattress made of
    money oopps & the 9 parcels of mine that have been "lost" in 20 months .YAHOO Hes gone .

  • +3

    Good news. As I keep saying, deliveries were quicker 100 years ago.

  • +15

    I hear he resigned months ago… It just took that long for his resignation to reach them in the post.

    • +1

      Good one!

  • I'm putting in my resume.

  • +5

    Good riddance. He's an absolute disgrace after bawling about "terminal and structural decline" in 2015.

  • +3

    Good
    I am glad its happened
    complete and utter joke of a CEO
    Company long turned to sh!t after he took the reigns

  • +2

    Since the changes last year, I have "lost" international parcels twice. All tracked into the hands of Aust Post, then they disappear. The only way is to lodge a complaint form. Now even the Aust Post Agencies do not accept these complaint forms anymore, sending me to Aust Post owned outlets in order to lodge the complaint. So now I have to travel quite some distance to lodge these complaint forms.
    Well done 6 million dollar man CEO, you made a good profit. Pity the service has tanked. Overjoyed that you resigned.

    • +1

      Are you meaning licensed outlets arent letting you lodge them? They are obliged to according to their license.
      Though its easier to lodge them online

  • +4

    Totally ridiculous pay packet. I think all government salaries need to be available to the public along with their entitlements, gifts and daily expense and duty diaries. Why shouldn't they be totally transparent with our tax dollars and their time that we pay them for? There should be very heavy jail sentences for any type of political fraud. It truly undermines the system when people see them get away with financial crimes. You should be able to believe in the people you vote for. They're not there to get fat off of our backs. Yet they do and then they can retire and live off a fat check for the rest of their lives. And their pension should be asset checked just like us regular folk who are paying for it.

    • +2

      No tax payer dollars are used by aus post….

      • However money destined to go to taxpayers in the dividend gets taken instead by the fat salaries of the Australia Post executives, in the multimillions. Taxpayer dollars are redirected from going to the taxpayer to the executives.

        • +2

          They are not taxpayer dollars. Perhaps you dont understand the term, taxpayer dollars are dollars that are taken out of your pay by the government as a form of tax. There is also business tax which is same thing just taken out of business revenue. So given that this money is not generated by tax payers, it never was taxpayer dollars so its not been redirected. I wonder if you realise that telstra ceo and most ceo's get a lot more….
          Anyway im not replying to your illogical responses anymore, you're misinformed and clearly not willing to listen.

        • -2

          @snipeymcsnipesnipe:
          If you tossed a coin or reversed your usage of the apostrophe, you'd be less incorrect. You might want to work on the basics before lecturing others.

        • @Frugal Rock: mate I normally support a lot of your comments but this time you lost, gotta know when to quit

        • @Your Friend:
          I don't think so. If I give a neighbour a cow on the condition they milk it and I get some back, they owe me milk. It's not 'giving' me milk or benevolence on their part. In the case of Australia Post, they say they got thirsty milking and drank the milk. Australia Post pay a dividend to the government that is reduced by excessive salaries. If the CEO salary and bonus was halved, where would that profit end up? A pre-agreed portion would end up in the dividend and would benefit taxpayers and wider society.

          I don't think I've lost anything when snipeymcsnipesnipe is evasive and won't even state how much money they say was 'given' was actually the dividend required in legislation. Their propaganda that jobs have been kept is utter nonsense and has been shown to be factually wrong.

          PS Maybe you can explain to me snipeymcsnipesnipe's apostrophe usage and omission within "dont", "its" and "ceo's" above. Be creative. And logical!

  • +1

    When did he start? Or start to have a bad effect?

    I'm not really aware of the politics, but I've been a strong supporter of aus post, until the last six months where we have had FXXX up after FXXX up. Like delivery notifications with no delivery, followed by:

    • Actual delivery the next day
    • Subsequent carding and pick up from the local post office
    • No carding followed by the tracking showing return to sender

    And each of these were after a delivery notification AND us raising a support case with AP…

    It I believe was mostly the new lazy mail contractor. But the fact Aus post did nothing pointed to organisational rot.

  • +2

    In previous years he refused to front up to a senate inquiry? He also approved huge donations to a religious group thru A post? it seems the franchisees are badly exploited to earn these profits for their fat cats.

  • How about the pony express .Will buy a horse to deliver mail only needs chaff will save
    Aus Post lots of money. Only wish I can find my spurs

  • -5

    The govt attacked Fahour for his level of pay. It was never Fahour's 'fault', it was the board that agreed to pay him that. They should answer the criticism, not he. He was simply a good negotiator on this point. Personally I respect Ahmed Fahour, and fellow Muslim the late 'Crazy John' Ilhan for their career success in spite of widespread discrimination toward their faith

    • +2

      I'd say the fact that they were so successful in their careers would be proof that there is no 'widespread discrimination' as you have claimed

      • It doesn't take much to see that at least some criticism is directed at him because of his name and ethnicity.

        • -2

          Yay, another apologist who rushes to the defence of any person who belongs to a minority group (but only one that it's cool and current to come to the defence of) victimised yelling that it's the appearance and not the actions that dictate the criticism…

          When you tip your postman $6m for doing a shitty job for his customers then you can have validity to that argument. Being able to keep a postage company in the black when it effectively had a monopoly over postage services is a joke.

        • +3

          A certain Queensland senator has said she has a problem with his religion, and just above you can see people saying he should be deported. To paraphrase Julia, it doesn't explain everything, but it doesn't explain nothing.

    • +1

      As long as their faith doesn't interfere with their position then I wouldn't give a tinkers if they were a Jedi Knight. The problem with religion is that some people use it as a way to demonise others and justify it by refering to books that were written centuries ago and give the promise of a rosy afterlife. Times change and society evolves. My view is you can have whatever belief you like, provided you don't negatively impact on others. All people should be treated equally, no matter what race, sex, religion or disability.

    • +2

      I note there's plenty of attacks on Fahour's personal donations to the Islamic Museum, right here on OzBargain. As noted, anti-Islamic discrimination is in fact … widespread!

  • +2

    Auspost is stacked with executives and managers earning way to much. High postage costs are impeding our ability to get good deals and it is restricting competition for retailers.

    Some of us should get together and start up an Australia Post competitor. With the amount of money being siphoned away to executives I'm sure we could do it cheaper and surely we could find a CEO for less than $300k.

    Even if we don't start up a rival, we should at least vote with our feet and always use companies that are cheaper like Sendle… https://www.sendle.com/

  • I think he has done Australia a favour! I just posted a small 103g parcel to Spain and the cheapest un-tracked postage was over $22! Ebay gave me just 10 but I had to match other sellers or dump my stock. So how come I can buy items from China for one dollar delivered?

    • +5

      i heard china government subsidize their postage system to encourage export and economy.

      • +1

        ^^ The communist state can dictate terms as they please ^^

        • +4

          Yeah in the mean time Australia milks their citizen dry so some ceo can earn 5m$ salary.

    • I hope for your sake it doesn't get lost. I had the same thing happen to me recently. Ebay underquoted the international freight (to Canada) and it was only after I posted it that I realised it didn't include tracking.
      Unfortunately the buyer also soon found out there was no tracking and claimed it didn't come. So either way I was screwed

  • +1

    Whatever it is thats how the corporations work, Politicians are not different except they found out that he was getting paid more and that brought the issue up, someone staying in that position is achieving something otherwise the swamp would have eaten him, Govt or non-govt they all are the same.

  • Not saying he a bad boss, but definitely way over paided. 10x more than British and US post masters, what a joke.
    All the board members need to be investigated for giving him that salary and sacked if needed.
    For a monopoly like Australia post they should be making 500mil min.

  • +9

    Remember the days as a kid when you use to ring someone's door bell and run away?

    Good news because Australia Post is now hiring!

    • +1

      You're on to something there - the new company motto can be "Ding, Dong, Ditch"

      Of the last 46 package I had delivered only 2 were actually delivered to my address - the rest left cards that I wasn't home and I had to go and get them.

      If the package requires a signature it will not be delivered a card will be left, is what the post master told me.

  • +4

    He turned this company backwards!!

    In the good old days parcels used to take 2-3 days between cities on standard post.

    Now this idiot has introduced another "priority" level of postage and standard post has increased in time and money!!

    What an absolute disgrace. Good riddance he's out.

  • +1

    Just because he is out doesn't mean stamp and postage prices will come down. Highly doubt service will improve either

    • +1

      Yeah, we will go through 12-18 months of the "don't blame me, I inherited this mess from the last guy" attitude at least

  • +1

    Thoughts - AustPost used to just tick along fine.
    Now its worse service than some third world countries and the price has gone through the roof. Often bills don't arrive in the mail until after they are due - what's up with that?

    There should be plenty of opportunity to diversify with the e-commerce revolution for parcel delivery. They should have it in the bag over couriers that don't have all the mail run established to piggy back off… but yet they don't.

    I don't know if this CEO is to blame or if he is a top bloke, but for his salary he should be a business mastermind, and given public perception these days of a once grand organisation, a change probably can't hurt.

    • +1

      Funny part is my mate that just immigrated from South Africa compared auspost to the non existent postal service there lmao.
      When someone immigrating from south Africa says its bad it must be.

  • +1

    This guy was the top paid Postal executive on the planet. Good riddance as he was in no way deserving of his pay. Do some research and you'll see he was paid 10x what his counterparts are paid in other much larger western countries.

    They should also look to replace the entire board, and realign their remunerations with the rest of the public service.

    Anyone wanting a Fat Cat pay packet should look to the private sector.

    • They should also look to replace the entire board, and realign their remunerations with the rest of the public service.

      This. All they were looking after were their own interests, and this is why Australia Post = Afailure Post.

  • -3

    Good Riddance. This scumbag did nothing to revive/recover crippling state owned business. Rather skimming more and more tax payers money and giving donations of over $2mil to their family owned mosques.

    • +11

      Does OzB have an award for the Most Ill-informed Comment of the Month?

      If so, I nominate……..

      • +2

        Sadly not, but perhaps Scotty should consider instigating one.

        • +1

          He should. Maybe with enough negs, a w@nker tag shows up next to the name?

        • @montorola:

          Why, its not in the interest of ozbargain to do this
          They should Ban people for suggesting silly things though

      • is OP "ill-informed" or are you just scared to face the truth? you seem like you're supporting Fahour's actions

        • +5

          What "truth" is that?

          And yes, the OP is disturbingly ill-informed.

  • He's probably gone for another job for more than $5.6 mil and no one will know about it…

  • Watching an interview with him and looks like his replacement will be one of the million dollar executives he has been training. Business as usual it seems.

  • +23

    I'll probably get slaughtered - but here we go.

    From what I gather - he was the CEO of NAB before Australia post poached him and offered him more money. From what I've read Telstra ceo is at 14 million a year and qantas ceo at 12 million a year. His 5.6 million is in the same ball park - also paid from the profit of the organisation and not from tax payers from what I understand.

    "Seven years ago, when Ahmed Fahour became CEO, Australia Post’s parcel business was valued at about $1bn. It is now valued at more than $5bn."
    http://www.theaustralian.com.au/business/opinion/robert-gott…

    Overall, it seems like this is what CEO's of big companies are paid - they asked for him/found him and he did a reasonable job. CEO's are on a lot of money and it sucks to see the guys doing the day to day work getting paid less and less.

    One of my close friends is an airline hostess, and she is on barely $30k a year working for Qantas and is struggling to get by. I feel like there should be an equivalent outrage but we don't see it on TV.

    https://www.facebook.com/TheProjectTV/videos/101543626643034… - I hate to reference the project (I know they're biased as hell) - but you get to hear the guy talk for himself - seems very well spoken and explains himself very well.

    I think it's a case of 'don't hate the person, hate the system'.

    In terms of the quality of service going down - I often think about this and relate it back to our requirements? Is our expectations increasing? Being in a world where we can send a text instantly and in the world of online orders. At the same time, it could be that the service just bad and that needs to be addressed - but the question is was it always bad?

    I've used TNT the other day for work for an item that needed to get to sydney from brisbane - paid $250(it needed to be next day delivery) and it took over 1 week for a box no bigger than an xbox. I had a similar result with Toll! So it's not just AusPost.

    I've been using startrack/DHL and they've been perfect.

    I think it comes down to what the workers are being paid and that's affecting the performance of the organisation as well. If the poor keep getting poorer and the rich keep getting richer, the quality of service that the 'poor' have to carry out will suffer.

    TL DR - the guy seems nice, he did a good job, he was head hunted and he didn't apply. System/world we live in sucks. Rich getting more rich, poor getting more poor - overall not his fault(if you feel it is, then by that definition practically every big organisation ceo needs to also be under scrutiny). Issue with the system not the person.

    • +10

      I'll probably get slaughtered - but here we go.

      Not by anyone who has more than two neurons to rub together.

      Well said.

    • +3

      "Rich getting more rich, poor getting more poor" :)

      Issue with the system not the person.

      =

      I present Mr Donald Trump, a case study in what is wrong with the system and the person; and whilst most CEO's can charm the pants off us mere humans, their personality traits align with that of a psychopath as they typically are so focused on their own worth and position that anything around them is a distant second, they will bend the moral boundaries to suit their needs… Are these the pinnacles of success we should hold in reverence and aspire to be like? In a capitalist system they have 'capitalised' better than most…

    • +3

      You're very well informed, insider info is that christine corbett is wanted to replace him but there isnt a suitable replacement for her so its likely to be someone on the exec board if there isnt an outside candidate they can secure for a lower salary than ahmed.

    • +1

      Startrack are owned by Auspost and their service level has tanked (relatively) since that association first began. Try sending something through their Botany distribution centre, it will never be seen again, even whole pallets.

      I could go on about this for days.

      As for a week to go from Sydney to Brisbane, that is a a joke. I would expect overnight for major carriers (road express) or max 2 days.

    • +12

      Finally a proper comment. He's a bit of a crook, but he turned the company around. You pay peanuts you get monkeys, he got the job done and looked forward to the future - hell, auspost are even trialling drones for mail delivery ala amazon and improved their web services tenfold. Yes, the parcels take forever but auspost was making big losses before he took the reigns.if he was doing such a terrible job as most of the comments here suggest he woulda been kicked to the curb long ago. But don't let the tall poppy syndrome in ya get in the way.

    • +6

      Australia post has done well especially in a world where email/online statements is the norm. They would have lost alot of income from letters.
      And add the rising cost of fuel, rent (major shopping centres aren't cheap) and wages.

    • -3

      I think it's a case of 'don't hate the person, hate the system'.

      How about, hate the system and hate the person? Systems are just groups of people following rules. Every person that participates creates the system and is responsible.

      Trust me, there's enough hate to go around.

      • +7

        I respectfully disagree with you. Listen to this interview - he voluntarily did not accept bonuses that he was entitled to(as his contract was set by the board - the people who hired him ) if he met his targets - which he did.

        http://www.3aw.com.au/news/ahmed-fahour-defends-his-time-wit…

        I don't know many people who would say no to Millions of Dollars that they were entitled to as per their contract because others were doing it tough. The man comes off as very knowledgable, he delivered and in reality saved the Australian Tax Payers Billions of Dollars. I would say he was worth being head hunted.

        Whether the top roles should pay so much - I feel is a seperate discussion. It's just worth repeating even when he was offered that next level of money, he is saying no to it - which is quite unheard of.

        • -6

          So the question is, why? Why would he knock free money back?

          I don't pretend to know the man. I have no need to, because I have neither the intention nor the means to pass judgement upon him. But, I am can't believe that anyone at the top is anywhere close to pure. There is no way to climb the ladder without getting your hands a little dirty. So at his best, he is appearing to be worse than he actually is, but from the perspective of someone at the bottom there's no way to tell the difference.

    • I think the board has more to answer than the CEO, but that doesn't mean he get's out of any scrutiny. I think one of the main structural issues is that the owners (Australians) have entrusted the monopoly to Aus Post and are after a decent service in return, the Board have then put in bonuses based on financial performance, not customer satisfaction, and the CEO has run it in a way that maximises profits at the expense of customer satisfaction.
      Sure, in the examples of CEO's of private company's you used his pay isn't excessive, but these are private companies, as others have pointed out his pay is many multiples of his overseas counterparts. Private companies exist to make money for the shareholder and pay CEO's big dollars to do this, whereas public entity's like Aus post (especially those with a monopoly) generally exist to provide a service and I don't think anyone seriously thinks that they have a good reputation for this.
      He has forgone bonuses in the past so he deserves at least deserves some credit for this, although it's not so hard to do this with a $5m+ base and the cynical side of me wonders how much of this was done out of the goodness of his heart and how much was done out of a motivation to avoid further criticism.

      I often think about this and relate it back to our requirements? Is our expectations increasing?

      I don't know if we used to send stuff or have it sent to us and not expect it to arrive but now are, but even if that is the case I don't think that is an unreasonable expectation.

  • +1

    I hope they mail his bonus cheque via Regular Post.

  • I say good riddance to him.
    Hopefully the next one knows what he's doing - at least his pay will be more like $1-2M. Less cream off the service.

  • -3

    He actually resigned 9 months ago, but he sent his resignation letter by post and it took this long to arrive.

    • +5

      it was funny the first time
      not so much now

      • Nonsense, it's still funny now.

        • Downvoting me is funny too.

        • +1

          I didn't see it the first time, only the second time, that is this time.
          So for me it was funny, as it was the first time.
          But when i say 'this time', i really mean yesterday, as i first saw it yesterday.
          So now i'm really seeing it the second time, but it's still funny.
          So you're right, it's still funny now.

          I'm going to upvote you, as what you said was funny.

  • Let's talk about welfare payments instead. For or against? :)

  • Pretty sure he got in excess of 4mil the year before, and surely a few more million in the years before that. So I'm surprised this has only just come to the public attention now.
    I wonder if we would be hearing the same thing from Malcolm Turnbull if the populists weren't becoming a threat to his party. Not that I align myself with them personally.

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