Nine boss Mike Sneesby steps down after ‘challenging’ year
By Calum Jaspan
Nine chief executive Mike Sneesby will depart the company at the end of September after 3½ years in the role, after what he described as one of the most challenging years of his career.
The company informed the ASX on Thursday morning that Sneesby will step down as chief executive and a director of the board, with chief financial officer Matt Stanton appointed interim chief executive. The board will begin a global search for a successor.
Nine Entertainment chief executive Mike Sneesby.Credit: Dominic Lorrimer
After a year plagued by controversy, Sneesby told staff that 2024 had been “one of the most challenging of my career” and one in which the company’s resilience had been tested.
“Despite the intensity of the scrutiny, my focus has not wavered from achieving the best outcomes for our people and for Nine,” he said.
He said that after months of reflection, he and the board agreed that now was the time for refreshed leadership after seeing through the work Nine is doing around its workplace culture and the outcomes of the culture review, which is expected to be delivered in late October.
Appointed in early 2021 after a lengthy recruitment process to replace Hugh Marks, Sneesby was favoured over several internal and external candidates, including then-publishing boss Chris Janz and Carl Fennessy, the former head of production house Endemol Shine.
Nine’s share price has lost 57 per cent since the start of Sneesby’s tenure. Nine’s market capitalisation fell below $2 billion this week, and is currently $1.96 billion. Its share price has suffered similarly to other media stocks due to prevailing market conditions, and is down 38 per cent across the year to date, closing at $1.24 on Wednesday.
New Nine chair Catherine West thanked Sneesby on behalf of the board for his contribution to the company over more than a decade, including his time as chief of Stan.
“As chief executive officer, his achievements include guiding the company out of the challenging COVID-19 pandemic, securing the rights to the Olympic Games through to 2032 and progressing the strategic and cultural transformation of Nine,” West said.
“The world-class coverage of Paris 2024 showcased the power of the Nine’s diversified portfolio of premium media assets.
“It’s also important to acknowledge Mike’s immense contribution to the success of Stan, building a successful streaming service that now boasts a broad entertainment and sport footprint with more than two million paying subscribers.”
Nine chief financial officer Matt Stanton has been appointed as interim chief executive.Credit: Dominic Lorrimer
Sneesby’s departure comes shortly after the exit of longstanding chair Peter Costello, who was replaced by Nine’s deputy chair West in June.
Nine is the publisher of The Sydney Morning Herald and The Age and also owns the Nine Network, commercial radio stations 2GB and 3AW, as well as streaming service Stan, Domain and The Australian Financial Review.
On Wednesday afternoon, Nine’s chief people officer Vanessa Morley said the company’s external review into workplace culture – which includes a review into the News and Current Affairs division – is on track to be delivered at the end of October.
“We remain committed to sharing the findings of the report with you and expect to be in a position to do so by the end of October,” Morley said.
Catherine West replaced former federal treasurer Peter Costello as chair in June.Credit: Sydney Morning Herald
This report was instigated after staff unrest prompted by sexual harassment allegations levelled against Nine’s former head of news and current affairs Darren Wick. Nine’s management has been criticised for not acting more swiftly to remove Wick after a number of complaints, along with the handling of his exit.
Costello departed shortly after, following an incident in Canberra Airport where he allegedly pushed over a News Corp journalist who was asking questions about Sneesby and the turmoil. Costello’s departure prompted a turbulent few months, which included the first staff strike in Nine’s history, with publishing staff walking off the job for five days when negotiations for a new enterprise bargaining agreement stalled.
Sneesby was criticised for being pictured carrying the Olympic torch in the lead-up to the strike, which came shortly after Nine announced 200 staff redundancies, including up to 90 in the publishing division. He later defended the move.
The company’s full-year results, delivered two weeks ago revealed a 31 per cent dip in profits, while revenues also fell 3 per cent. Executive bonuses were cut after the group failed to hit its EBITDA target of $533 million set by Nine’s board.
During his tenure, Sneesby secured a landmark broadcast rights deal for the winter and summer Olympic Games until Brisbane 2032 in a $305 million deal. He also retained the free-to-air broadcast rights for the NRL and oversaw subscription growth at both Nine’s publishing mastheads and streaming service Stan.
Nine has been canvassing interest in its digital real estate business Domain, according to a recent column by The Australian Financial Review’s Street Talk team.
More to come
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