ABC chairman Justin Milne blames leadership style and says choosing the right leader is a ‘lottery’

This article is more than 2 years old

This article is more than 2 years old

Michelle Guthrie says she is devastated by the ABC board’s decision to sack her but the chairman, Justin Milne, blamed her leadership style and said choosing the right leader was a “lottery”.

A lawyer by profession, Guthrie said her five-year term ends in July 2021 and the board had no reason to trigger the termination clause. “I am considering my legal options,” she said.

“At no point have any issues been raised with me about the transformation being undertaken, the investing in audiences strategy or my effectiveness in delivering against that strategy.

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“I wanted to continue the transformation of the ABC and to support the great work of ABC’s dedicated and passionate employees to ensure our continuing trust, quality and distinctiveness as the source of Australian culture, conversations and stories. To me, it is the content produced by the ABC that is of primary importance to Australians, with the technology used to deliver that content a distant second.

“The ABC is a great Australian institution that has the trust and support of the great majority of Australians. I wish everyone at the ABC every success in the future as they continue their mission to keep all Australians informed and entertained.”

Milne said the decision had not been taken lightly but refused to detail what was wrong with Guthrie’s leadership.

“The board felt in the end that her leadership style was not the style that we needed going forward,” Milne told the ABC’s news channel. “We needed a different leadership style and that is the decision of the board.”

Milne said Guthrie’s relationship with the government “could have been better”.

“That said, I think Michelle tried hard and was involved with government,” he said. “In an ideal world, I would like to see our relationship – I think the relationship between the ABC and government is, on the one hand, difficult because of course we need to be independent from government, but it is an important relationship because the government funds us.

“I personally think Michelle has done a good job and the board has been very happy with many, many of the things that she does.”

The first female managing director of the ABC, Guthrie replaced Fairfax editorial executive Mark Scott, whose 10 years at the helm was marked by his strong advocacy for the public broadcaster and defence of its journalism.

Guthrie had neither a background in content making or public broadcasting.

Milne said you could not blame the selection process, which is done by an independent panel and the board, because “it doesn’t always work out”.

“Sometimes it takes a while for it not to work out.”

Guthrie said she was “devastated” by the board’s decision to terminate “despite no claim of wrongdoing on my part”.

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“While my contract permits the board to terminate my appointment without cause and with immediate effect, I believe there is no justification for the board to trigger that termination clause. I am considering my legal options,” she said.

“I am devastated by the board’s decision to terminate my employment despite no claim of wrongdoing on my part. I wanted to continue the transformation of the ABC.”

Guthrie appointed many of the executive team, including the chief financial officer, Louise Higgins. Higgins and the acting managing director, David Anderson, are likely internal candidates for the job.

Guthrie is the second managing director to be removed by the board in 17 years. She lasted longer than Jonathan Shier who was removed after just 11 months.

Her term has been marked by upheaval, more than 1,100 redundancies and low morale among staff.

The secretary of the ABC section of the Community and Public Sector Union, Sinddy Ealy, said the board had done the right thing.

“It’s been clear for some time that Michelle Guthrie is not the right leader for the ABC,” she said. “The board needs to act quickly now to reassure Australians that they will appoint a new MD who not only knows understands public service broadcasting but someone who is committed and able to restore the confidence of the ABC workforce and the community at large. We need a fully functioning ABC now more than ever.”