Australia markets open in 9 hours 55 minutes

    -39.40 (-0.57%)

    -0.0004 (-0.06%)
  • ASX 200

    -46.90 (-0.70%)
  • OIL

    -0.72 (-1.58%)
  • GOLD

    +5.70 (+0.31%)

    -810.68 (-3.32%)
  • CMC Crypto 200

    -31.11 (-8.40%)

Australia Post CEO resigns 'immediately' amid $20k watch scandal

Anastasia Santoreneos
·2-min read
Australia Post CEO to resign amid $20k watch scandal. Source: Getty/ABC
Australia Post CEO to resign amid $20k watch scandal. Source: Getty/ABC

Australia Post chief executive Christine Holgate has resigned from the company today, after it was revealed the business spent thousands on Cartier watches for executive staff members.

"I have offered today the Chairman and Board of Australia Post, with great sadness, my resignation as Chief Executive with immediate effect," Holgate said in a statement on Monday.

"I am not seeking any financial compensation."

Holgate has been CEO of Australia Post since 30 October 2017, and is one of the top-earning public sector workers, with a salary of $1.6 million for the 2019-20 financial year.

It was revealed to a Senate Estimates committee the postal service spent nearly $20,000 on luxury watches for staff members who were part of a successful deal with the major banks.

It was also revealed that the company paid a whopping $34,000 for Holgate’s hotel stays in Melbourne between October 2017 and July 2018.

"I deeply regret that a decision made two years ago, which was supported by the Chair, to recognise the outstanding work of four employees has caused so much debate and distraction and I appreciate the optics of the gifts involved do not pass the ‘pub test’ for many," she said.

“I still believe firmly that the people who achieved the Bank@Post outcome for Australia Post deserved recognition, their work secured a $220m investment over the following years, which dramatically improved the financial performance of the company, protected a critical community service which more than 50 per cent of the communities in Australia depend on and made our Community Post Offices sustainable for the long term."

Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, property and economy news and more.

Follow Yahoo Finance Australia on Facebook, Twitter, Instagram and LinkedIn.