Qantas CFO Peter Gregg is being dropped from his board post under the takeover proposals now being framed by buyout syndicate Airline Partners Australia.
An executive director of Qantas since September, 2000, Peter will get to stay in his present salaried post as Chief Finance Officer, but his ability to influence board decisions will be weakened.
The decision comes only months after the existing Qantas board paid Mr Gregg a $4.52 million cash inducement to sign a new $3.6 million a year contract.
Bob Mansfield, official APA spokesman and deputy chairman of Australian-based buyout partner Allco Financial Services, confirmed that Mr Gregg would not continue as a director, adding, “Peter Gregg is not on the board”. “He is involved as a member of the management team,” said Mr Mansfield yesterday.
Mr Gregg ranks second at Qantas to the long-serving Mr Dixon and has been openly touted by aviation commentators as a likely successor.
He is also director of a number of companies within the Qantas Group as well as holding separate board posts with Leighton Holdings and Stanwell Corporation.
In outlining plans for a post takeover board, Mr Mansfield noted that if the $10 billion deal went ahead then managing director Geoff Dixon, 67, would be the sole Qantas team member to get a board seat after the airline’s privatisation.
Mr Gregg joined Qantas from Australian Airlines after the domestic carrier was merged with Qantas which was then in government ownership.
Report by The Mole
