A few weeks ago, Cathay Pacific's CEO abruptly resigned, and now Cathay Pacific's chairman has also resigned.
John Slosar Resigns as President of Cathay Pacific
It has just been announced that Cathay Pacific President John Slosar will be "retiring" from November 6, 2019 .
For those of you who are unfamiliar, Slosar, 62, has been with the Swire Group (Cathay Pacific's parent company) for nearly 40 years. He was CEO of Cathay Pacific from 2011 to 2014 before being named chairman.
The Board of Directors has appointed Patrick Healy as Chairman of Cathay Pacific . He has been with the Swire Group since 1
What the executives say
Slosar has the following: I say about his retirement:
"Being the chair of Cathay Pacific was the greatest privilege for me. I would like to thank the entire Cathay team for their support, commitment and friendship over the years as part of this team. They are always the best during difficult times when their dedication really shines through. Pat is a strong and experienced CEO, successfully managing a number of different Swire businesses. He is creative and customer oriented and I am sure he will take Cathay Pacific to new heights. "
Healy had to say the following about his new role:
" I look forward to working closely with CEO August Tan, my longtime Swire colleague, his talented team and the entire board of directors. Together with the support of the Cathay team, we will ensure that our airlines focus relentlessly on safety, on improving our customers' journeys, on efficiency in everything we do, and on competition to effectively create positive business results. "
Merlin Swir, chairman of Swire Pacific, said the following:
" I would like to thank John for his tremendous contribution to the company over the last 39 years. Under her leadership as CEO, and then as Chair, Cathay has built up her already enviable reputation for quality service and the extensive global network that underpins Hong Kong's success as Asia's largest international travel hub. The three-year transformation program, which is now nearing completion, leaves Cathay well-positioned for continued growth in the future.
What does this mean for Cathay Pacific?
Cathay Pacific had an incredibly difficult few weeks reflecting the challenges that
Hong Kong Airport eventually closed due to protests, and China eventually used the airline as a way to gain some control in trying to get Cathay Pacific to punish workers who
So, while not direct, it seems that many changes are being made at the top to appease China and create a sacrificial lamb.
That being said, I have a few common assumptions here.
First of all, I find the public announcement from Slosar interesting. When Hog resigned, he said the following, in part:
"These are challenging weeks for the airline, and it is okay for Paul and I to take on the responsibility as company executives."
Although probably only political, the tone here is different, as if he was just retiring at the moment. There is nothing to take responsibility for what happened.
Second, I find it interesting that the Swire Group is obviously under pressure from China, though they are simply replacing the current executives with other people in the company.
Swire retains its talent well and all these executives have been with the Swire Group for decades.
It seems likely that "retired" and "retired" executives are simply used as sacrificial lambs. The company replaces current executives with other executives from the company who may have similar philosophies.
What do you do with the resignation of President Cathay Pacific?