Exclusive | Cathay Pacific weighing outside talent in hunt for new chief financial officer, sources say
- Hong Kong’s leading airline will replace Martin Murray, who has been with Swire Group for 25 years, people familiar with the matter say
- The replacement comes as the industry grapples with a global slowdown in travel and after top management was reshuffled last year
Cathay Pacific is seeking a replacement for its long-standing finance chief Martin Murray, two sources have said, and in a rare move is considering external candidates for the role.
Headhunting firm Korn Ferry has already started the search, according to people familiar with the matter. The final choice could mark the first time a chief financial officer (CFO) has been installed from outside the airline or from majority shareholder Swire Group.
The airline revealed on Wednesday it made profit of HK$344 million (US$44.2 million) in the last six months of 2019. However, annual profits dropped 28 per cent to HK$1.7 billion last year on revenue of HK$107 billion, which came amid months of anti-government protests in Hong Kong and the axing of CEO Rupert Hogg.
Brendan Sobie of the Sobie Aviation consultancy said: “An airline CFO position is different than other executive positions. Typically, you look for someone with finance experience. It doesn’t have to be airline finance experience. It doesn’t have to be someone from within the organisation or group. So while one may say Cathay could benefit from new blood, this shouldn’t apply to a CFO. They just need to find a good finance person.”
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Responding publicly about a change of CFO, Cathay Pacific chairman Patrick Healy said at the airline’s annual results press conference: “That’s speculation and we can’t respond to speculation about any staff matters so we’re not going to respond to that in any way.”
However, a well-placed source said seeking an outsider for the role was rare and “highly unusual”.
Bocom International analyst Luya You said: “I think any major management changes at this time will definitely be a challenge considering the circumstances. Cathay is going through one of the toughest years in its history, so having someone steady at the helm is more of a necessity, not a perk.
The airline already underwent a major shake-up of its top talent last year with the premature departure of Hogg, chief customer and commercial officer Paul Loo Kar-pui and the retirement of chairman John Slosar after China’s aviation regulator sought changes in management over a perceived inadequate response to staff involvement in the protests.
Augustus Tang Kin-wing replaced Hogg as CEO, Ronald Lam Sui-por assumed Loo’s role and Patrick Healy was made chairman.
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According to a company source, Murray was expected to be replaced last year with Sean Pelling, the general manager for finance and performance who has been with the parent company since 2007. Murray could ultimately be moved to a new finance role within Swire Group.
He joined the group in January 1995 and worked across the company in a variety of finance roles before moving to Cathay Pacific as its top financial executive in 2011.
