Mr Costello announced his resignation from the Nine board after allegedly shoving a reporter from The Australian, Liam Mendes, on Thursday who was questioning the ex-chairman about sexual harassment allegations at the media outlet involving the company’s former news boss Darren Wick.
Following the furore, Nine’s board met for an emergency board meeting on Friday afternoon and Mr Costello announced his resignation two days later.
While the shoving allegations and sexual harassment claims seem the primary reason for Mr Costello’s exit, Mr Greenwood told Sky News AM Agenda host Laura Jayes he had “no doubt there’s more at play here”.
“The reality is that Nine has underperformed from a shareholder’s point of view for quite some time and quite clearly, even the corporate governance in regards to the allegations of sexual harassment inside that workplace – well they go right to the very top of the board there’s no doubt,” he said.
Mr Greenwood said Nine’s lacklustre share price, which fell about 29 per cent over the past 12 months and over 54 per cent from its all-time high in November 2021, has put huge pressure on board members to act against the chairman.
“You can see there that the pressure not only from the economy generally, but also from, clearly, the performance of the business itself has some pressure on the board, there’s no doubt,” he said.
“Even though there are other circumstances now at play, it all comes down to that final number. What’s the share price doing?”
The directive to axe Mr Costello, Mr Greenwood argued, would have come from an array of the media outlet’s major shareholders who have had a strong say in the fate of the ex-chairman.
“Bruce Gordon owns 15 per cent of nine – the boss of Win Television – (he’s) been really in that media so his family would have been very much consulted before this move took place,” he said.
“Perpetual has got about 9.5 per cent of the shares. Macquarie bank’s private clients – so it’s not Macquarie itself, it’s actually its private clients – own about 7.5 per cent and then Yarra Capital, a small boutique funds management business, has about 5 per cent of those shares.
“Now that accounts for about 37 per cent of the shares in the Nine Entertainment company and so you can imagine that no move of this consequence would have taken place without those shareholders being consulted.”
Further speculation on Mr Costello’s departure came from Nine-owned 2GB host Ray Hadley who said the company’s board “had no other option” after footage emerged of the alleged shoving.
“He’s now gone, Mr Costello, and there was no other option he had because what he did – well, they’re saying allegedly, but I mean it’s a video so it’s not alleged – he definitely pushed the bloke even though he denied it he definitely pushed Liam Mendes,” Mr Hadley said on Monday morning.
“And as a result the board had no other option. They met on Friday, they met again yesterday and by yesterday afternoon the announcement had been made to the stock exchange – because we are a public company – that there be a change in chairman.”
The 2GB host congratulated the company’s incoming chair, Catherine West, and told listeners he hoped she would steer the company in a new direction.
“There’s changes to be made in the company and I’m sure that she’ll lead those changes,” he said.
Mr Costello allegedly shoved Mr Mendes at Canberra Airport on Thursday afternoon after repeatedly ignoring questions from The Australian reporter.
About one minute after Mr Mendes introduces himself, Nine’s chairman appears to rush the journalist, knocking him to the ground before apparently smiling and walking away.
“You’ve just assaulted me,” Mr Mendes can be heard saying.
Mr Costello later held a press conference where he denied that claim, arguing he “did not strike” Mr Mendes.
The Australian reporter was questioning Mr Costello about revelations Mr Wick got a $1 million payout despite concerns about the former news boss’ conduct with women.
Mr Costello was appointed as Nine’s chairman in 2016 and oversaw a major merger with Fairfax Media in 2018 that brought major mastheads The Sydney Morning Herald, The Australian Financial Review and The Age under its belt.
He also managed the purchase of radio stations like 2GB, 3AW and 4BC in 2019.