Was there ever a company more clearly in need of new blood than Fairfax Media? Today, it seems that chairman Ron Walker may go quietly as part of a compromise with the Fairfax family, after their aggressive assault on his position late last week.
Analysts are suggesting that by doing so he hopes to preserve the position of his chosen successor, Roger Corbett, who is still apparently acceptable to the institutional investors and the Fairfax family, if not exactly embraced with enthusiasm.
Both sides of this dispute are spouting about board renewal, but I gather that behind closed doors, decisions of the board suggest neither side is really interested in what that implies.
I am told that the board decided to reduce its numbers from nine (including CEO Brian McCarthy) to eight. That means that Julie King, whose position falls vacant at this AGM, will not be replaced.
That will make it harder for new blood to be introduced. Only two positions will be up for grabs — Corbett’s and Walker’s.
Yet there is new blood on tap. As I reported last night, Steve Harris, the first and only person who has been appointed editor-in-chief of both of Melbourne’s major journalism publishers, is a candidate, adding his name to that of Gerard Noonan, whose candidacy was announced on Crikey yesterday. Noonan is former editor of the Australian Financial Review and long-standing chairman of Media Super.
Noonan has serious institutional investor connections, having been a figure in industry superannuation for decades. Whether this translates into support remains to be seen. He has hardly been backwards in promoting his views, which may antagonise more people than it persuades.
He made it clear in his interview with me last night that he believes the transition from Rural Press to Fairfax Media has been too big a step up for JB Fairfax and the Rural Press management team.
Harris is taking a more softly, softly approach, leaving his pitch to shareholders for the normal processes of board elections. That may prove to be the wiser course.
But does either of them have a chance?
If board appointments were a meritocracy, both men would have to be serious candidates, with Harris attracting a strong Melbourne vote. Sadly, the Fairfax board, like many others, is better at perpetuating itself than reinventing and reinvigorating.
For the number of positions to be reduced at a time when the board is clearly dysfunctional is nothing short of a scandal. Surely the institutional investors will not be content to sit on their hands?
*Declaration: Steve Harris and Gerard Noonan are on the board of the recently established Foundation for Public Interest Journalism. I am the chair.
Scandal, Margaret? There’s nothing mysical about media. A media business is like any other – if dollars in exceeds dollars out, the business prospers. Fairfax has been rather patchy in this regard, while the Rural Press track record wass far more businesslike and impressive. As for numbers on the board of a public company bringing success, either we’ve discovered a bit holy grail here or we’re way off the mark. Reducing numbers tends to sharpen delivery and focus. No scandal generated that I can see….
Dale Jennings
Posted Wednesday, 23 September 2009 at 5:00 pm | Permalink
Scandal, Margaret? There’s nothing mysical about media. A media business is like any other – if dollars in exceeds dollars out, the business prospers. Fairfax has been rather patchy in this regard, while the Rural Press track record wass far more businesslike and impressive. As for numbers on the board of a public company bringing success, either we’ve discovered a bit holy grail here or we’re way off the mark. Reducing numbers tends to sharpen delivery and focus. No scandal generated that I can see….
Isn’t Stephen Mayne a candidate?
corbett could no doubt continue to make a magnificent contribution to the death throes of fairfax – i mean he’s made a solid contribution already. but steve harris? as dull as dishwater, pedestrian in his thinking and formerly a member of the higher editorial echelons at the Age responsible with many others for its slide into nothingness. gerry noonan – nice bloke, good thinker, reputable journalist, but not up to breathing life back into the rotting carcase of fairfax.
That’s quite a declaration there Marg, might have been the first sentence?
Good read all the same. I tend to agree that Fairfax do need to reinforce it’s public interest credentials to win more loyalty of Sydney metro consumers. That way they will want to support Fairfax. Want to advertise with them.
They’ve made some good efforts recently teasing out the spiv aspects of NSW ALP, and even got the Planning Minister Kristine Keneally doing her own ‘blue steel’ (to borrow a phrase) in protest.
(Really is KKK so ignorant or so shameless not to know that ‘objective public servant’ Haddad blocked a critical FoI in the sensitive Marrickville by election Sept 2005? That Haddad as now director of planning is thus seriously politicised, at least perception of same, ever since over that ongoing backlash to a $5B truck tunnel under that suburb? KKK doesn’t know, as per Stateline via Estimates last week, who barrister Tim Robertson is, or that he’s a leading counsel on planning law allied to Carr Labor in the 90ies? Can KKK’s yankee accent really forgive such deficits in a govt of, by and for the people?)
When I worked as a reader analyst at Media Monitors my night shift supervisor said with some validity that the SMH was the most important newspaper in the country. A big call contrary to the numbers. And yet by it’s traditional role and positioning it was true. The halcyon days of big press might be behind us as Keating said today on WT abc but that’s no rationale for throwing the babe out with the bath water.