Kim Williams is wasting little time in the reformation of Rupert Murdoch's Australian operations, with two senior executive changes already this week - and more rumoured to be in the wind.
In a year when News has been the news almost as often as it reports on it, the rearrangement of managers is still under way, and will flow into the new year.
On Monday, it was the turn of the chief operating officer Peter Macourt to decide it was time for last drinks at News Ltd.
Macourt, who many credit as being the man who kept Williams's predecessor, John Hartigan, on the fiscally responsible track, was potentially a rival to Williams for the chief executive's job.
"I believe now is the right time to step aside and allow a new regime to take the company into the future," was Macourt's sanctioned quote in the News press release announcing his departure. Cynical Insider reads that as an executive falling on a provided sword.
In a nice touch, there was even a tribute from the vanquished Hartigan: "Over the past 11 years no one did more to support me in my role, or more to advance the interests of News Ltd than Peter."
Insider is not certain whether that job reference from Harto was a positive or a negative in Williams's assessment of Macourt.
As Williams builds his new regime, he has brought an "outsider" into the notoriously clannish halls of News's Holt Street office in Sydney, importing Jerry Harris from Queensland to take on the new role of managing director of newspapers and digital products.
There is speculation he may be joined at head office by the Courier-Mail editor-in-chief, David Fagan, which might make Chris Mitchell at The Australian squirm, given that Fagan was his replacement in Queensland when he took the prestigious Sydney role.
The lanky red-headed Harris is himself an import from his beginnings with News Corp as a classified ads salesman at The Times in London. He defected briefly to the Packers' Australian Consolidated Press when he moved to Australia more than 20 years ago, but returned to head up advertising for The Australian.
It was Harto who sent Harris to Queensland in 2001, where he has remained until being recalled this week. He is not a cleanskin in terms of Holt Street, having worked there for a decade including as managing director of the Mirror Australian Telegraph Publications unit.
His appointment probably puts paid to suggestions that Peter Blunden, the former editor of the Herald Sun in Melbourne and now the managing director of the Victorian business, will be going to Sydney - although Insider hears he may have been at Holt Street yesterday.
The veteran News columnist Mark Day's tip this week that Col "Sink Plugger" Allan, the New York Post's finest and a long-time mate of Harto, might be returning to Sydney was a bit premature, although News sources say all will be revealed next month, which in Allan's case is a confronting thought.
Two years ago, News's January revelation was that Murdoch's son-in-law Alasdair MacLeod had outplaced himself after Harto redesigned his job.
RETIRED HURT
As usual, readers of ASX announcements are almost the last to know what is happening with a company once it slides into insolvency.
In the case of the defunct Prime Trust (motto: Experts in Retirement), it took until last night for the market to be formally informed of something that happened three weeks ago - its corporate shell is being euthanised by liquidators.
Prime Trust fell more than a year ago after a series of suspensions while it tried to renegotiate bank debts. It sold its retirement villages to try to clear the books, but the queue of unrequited unsecured unitholders is understood to have been even larger.
insider@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
What executive changes has Kim Williams made at News Ltd in Australia?
According to the article, Kim Williams moved quickly to reshape Rupert Murdoch's Australian operations, prompting senior executive changes this week. Chief operating officer Peter Macourt stepped aside, and Williams has brought in Jerry Harris from Queensland as managing director of newspapers and digital products. The piece also says more changes are rumoured to follow into the new year.
Why did Peter Macourt leave his role as chief operating officer at News Ltd?
The article reports that Peter Macourt announced he believed it was the right time to 'step aside and allow a new regime to take the company into the future.' Macourt had been credited with keeping the previous chief executive on a fiscally responsible path and was seen by some as a potential rival for the top job. The article also notes a warm tribute from John Hartigan, while insiders suggested his departure was effectively him falling on a provided sword.
Who is Jerry Harris and what experience does he bring to News Ltd’s Sydney leadership?
Jerry Harris was brought from Queensland to take the managing director role for newspapers and digital products. The article describes his background: he started as a classified ads salesman at The Times in London, briefly moved to Australian Consolidated Press, returned to News to head up advertising for The Australian, spent more than a decade at Holt Street and was sent to Queensland in 2001 where he remained until this recall.
Are other senior editors or managers expected to move to News Ltd’s Sydney head office?
The article mentions speculation that Courier-Mail editor-in-chief David Fagan may join the Sydney head office, which could affect editorial dynamics. It also reports that Peter Blunden, managing director of the Victorian business and former Herald Sun editor, was not likely to move to Sydney, though he was reportedly at Holt Street recently. Other staffing moves are presented as rumours likely to be revealed next month.
How might these management changes affect News Ltd’s corporate culture in Sydney?
The article suggests Kim Williams is building a 'new regime' and has deliberately brought an 'outsider' into the traditionally clannish Holt Street offices in Sydney. While it doesn't predict outcomes, it implies the appointments are intended to reshape management and editorial structures as Williams implements his plans.
What example does the article give about how ASX announcements can lag behind company events?
The article highlights Prime Trust as an example, noting that readers of ASX announcements are often among the last to learn about company distress. In Prime Trust’s case, the market was formally informed only last night that liquidators were euthanising the corporate shell — a development that the article says actually happened three weeks earlier.
What happened to Prime Trust and why is it relevant to investors?
The article reports Prime Trust slid into insolvency more than a year ago after a series of suspensions while attempting to renegotiate bank debts. It sold its retirement villages in an effort to clear the books, but the company’s corporate shell is now being wound up by liquidators, leaving a queue of unsecured unitholders who may not be fully repaid. This serves as a reminder of insolvency risk for investors in such structures.
What should everyday investors take away from the article about corporate governance and market communications?
Based on the article, everyday investors should note that major executive reshuffles can signal strategic shifts at media companies like News Ltd, and that official market disclosures (ASX announcements) can lag behind actual events in a company's lifecycle. The Prime Trust example underscores the importance of monitoring company communications and understanding the risks that come with insolvency or delayed disclosure.
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