Former Australia Post CEO Ahmed Fahour paid $10.8 million: 2017 report

Former chief executive of Australia Post Ahmed Fahour was paid $10.8 million after quitting his post earlier this year amid huge uproar about his annual pay deal.

Australia Post Managing Director and Group CEO Ahmed Fahour announces Australia Post's full year financial year results in Melbourne, Thursday Sept. 4, 2014. (AAP Image/Joe Castro) NO ARCHIVING

Australia Post Managing Director and Group CEO Ahmed Fahour Source: AAP

Mr Fahour was paid $6.8 million in the 2017 financial year, according to the company's remuneration report released on Friday.

That amount was boosted by an additional $4 million in incentives awarded from 2015 and 2016.

Mr Fahour's parting pay included $1.75 million in superannuation, and much more than the estimated amount of $5.6 million estimate which did the rounds in the lead-up to his abrupt resignation in the face of criticism.

Australia Post has nearly trebled its full-year profit to $95 million in Fahour's final year as chief executive, boosted by another strong performance by its parcels unit.

Parcels' pre-tax profit rose 4.8 per cent to $299.7 million in what Australia Post said was a very competitive market, but the number of letters sent in the 12 months to June 30 fell by another 11.8 per cent with that business losing $180.2 million before tax.

Overall net profit rose from $36 million in 2016 and Christine Corbett - who is acting chief executive following Mr Fahour's departure amid a furore over the size of his pay - said Australia Post's move to becoming a major player in delivering goods bought online was paying off.
She said the success of the parcels business, which was the cornerstone of the turnaround from a $222 million full-year loss in 2015, was allowing Australia Post to reinvest in other parts of its business

"Last Christmas, we had our largest ever parcel delivery day, with more than two million parcels delivered in a single day, and we've continued to experience strong growth throughout what is traditionally a quieter second half," Ms Corbett said.

"With new entrants to the market contributing to overall growth in e-commerce volumes, we expect our parcels business to continue to grow, allowing for reinvestment in customer initiatives like MyPost, parcel lockers and digital trusted services."

December 12 was Australia Post's biggest ever day for parcel delivery.

Strong parcels growth is expected to continue in the 2018 financial year but further declines in letter volumes will put pressure on Australia Post's bottom line, Ms Corbett said.

"The letters business still presents a significant challenge, with our largest ever 12-month volume decline experienced this year," she said.

"We need to continue to ensure this business is sustainable, while managing the declining foot traffic in post offices, and we are speaking with the community on how they may use the letters service in the future."

Former Blackmores chief executive Christine Holgate has agreed to become Mr Fahour's permanent replacement.

Australia Post's full year profits

  • Net profit $95m vs $ 36m
  • Revenue up 3.7pct to $6.81b
  • EBITDA up 29.1pct to $516m

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Source: AAP


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