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Richard Goodmanson

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Richard Goodmanson
BornAugust 1947
Australia
NationalityAmerican and Australian
EducationUniversity of Queensland (BEc 1975, BCom 1983); degrees in civil engineering and an MBA
OccupationBusiness executive, company director
CompanyDuPont
TitleFormer Executive Vice President and Chief Operating Officer, DuPont; former President and Chief Executive Officer, America West Airlines

Richard Roy Goodmanson (born August 1947) is an Australian-born American business executive who was president and chief executive officer of America West Airlines from 1997 to 1999 and executive vice president and chief operating officer of E. I. du Pont de Nemours and Company from 1999 to 2009. After leaving executive management he served as a non-executive director of the mining group Rio Tinto from 2004 to 2016 and of the Australian airline Qantas from 2008 to 2019.[1][2]

Goodmanson was born in Australia and holds Australian and United States citizenship.[3] He began his career with 10 years in heavy civil engineering project management, principally in Southeast Asia, including work on the construction of the Hong Kong subway system. He then spent 12 years as a principal at the consulting firm McKinsey & Company, where he co-founded its transportation practice, and four years as senior vice president of operations at Frito-Lay, a subsidiary of PepsiCo.[4][5]

He joined America West in June 1996 as executive vice president and chief operating officer of the airline and was elected its president and chief executive officer on February 4, 1997. The airline's parent company reported record revenue and net income for 1998, his last full year in charge, before he resigned in April 1999.[6][7] He joined DuPont on May 1, 1999 as an external, mid-career hire. There he sat in the Office of the Chief Executive under chief executives Charles O. Holliday and Ellen Kullman, and was responsible over time for a group of chemicals and materials businesses, several global functions, and DuPont's operations outside the United States, with a focus on emerging markets.[8][9] He retired from DuPont on September 30, 2009 and then spent three years as a paid consultant to the company on litigation support and business projects.[10]

At Rio Tinto, Goodmanson chaired the board committee responsible for safety, environmental and social matters for most of his 11 years as a director. At Qantas he sat on the Remuneration Committee and later chaired the Safety, Health, Environment and Security Committee.[11][12] He was also an economic adviser to the governor of Guangdong Province in China from 2003 to 2009, and chaired the United Way of Delaware.[9]

Early life and education

Companies House records give Goodmanson's full name as Richard Roy Goodmanson and his date of birth as August 1947.[1] When Rio Tinto announced his appointment in December 2004, it said that Goodmanson "was born in Australia and educated at universities in both countries", meaning Australia and the United States, and that he held "degrees in civil engineering, economics, commerce and business administration".[13]

The University of Queensland lists him among its alumni, with a Bachelor of Economics awarded in 1975 and a Bachelor of Commerce awarded in 1983.[14] The Qantas notice of meeting for his first election to its board in 2008 described his qualifications as bachelor's degrees in civil engineering, commerce and economics and a Master of Business Administration.[3] Rio Tinto's 2010 annual report listed them as "MBA, BEc and BCom, BEng (Civil)", and its 2015 report as "B. Econ, BCom, MBA, MCE".[9][4] The institutions that awarded his engineering and business administration degrees are not named in these company disclosures.

Career

Civil engineering

Before entering management consulting, Goodmanson spent 10 years in heavy civil engineering project management, principally in Southeast Asia.[3] Rio Tinto's 2015 annual report said this work included the construction of the Hong Kong subway system.[4]

McKinsey & Company (1980 to 1992)

From 1980 until 1992 Goodmanson was a principal at McKinsey & Company.[15] Qantas later stated that he co-founded the firm's transportation practice.[5] Rio Tinto said that he "led client service teams on major programmes of strategy development".[4]

Frito-Lay (1992 to 1996)

From 1992 until 1996 Goodmanson was senior vice president of operations at Frito-Lay, the snack food subsidiary of PepsiCo.[15][4] When he left to join America West in 1996, the airline paid him $100,000 "to compensate for benefits foregone in connection with his resignation from his prior employer".[15]

America West Airlines (1996 to 1999)

Goodmanson joined America West Airlines in June 1996 as executive vice president and chief operating officer. The airline is based in Phoenix, Arizona and was then controlled by America West Holdings Corporation, with William A. Franke as chairman and chief executive. Goodmanson joined the airline's board on October 15, 1996.[6] On February 4, 1997 he was elected president and chief executive officer of the airline and president of the holding company, taking over roles that Franke had held until then. Franke remained chairman and chief executive of the holding company and chairman of the airline.[15]

His employment agreement, dated February 15, 1997, provided for him to serve in those roles until June 17, 1999, at a base salary of $500,000 a year. It also committed the company, if he asked, to lend him up to $600,000 on a nonrecourse basis to pay taxes on a restricted stock grant, and bound him to a two-year non-competition clause.[15] When he joined, the board granted him options over 250,000 shares of Class B common stock and 50,000 shares of restricted stock, followed by a further option over 100,000 shares. The compensation committee said that in approving the options it had considered, among other factors, "a subjective evaluation of Mr. Goodmanson's ability to lead the Company in formulating and implementing its long-term business plan".[15]

During his tenure the airline ran its hubs at Phoenix and Las Vegas and a smaller hub at Columbus, Ohio. It described itself as the lowest-cost major airline in the United States, with an operating cost per available seat mile in 1998 of 7.29 cents, about 25 percent below the average of the other major domestic airlines. At the end of 1998 the airline served 57 destinations with a fleet of 111 aircraft, and reached another 40 destinations through alliances with Continental Airlines, Mesa Airlines, British Airways, Northwest Airlines and EVA Air.[6] In January 1998 the group set up The Leisure Company as a separate subsidiary to expand its vacation package business, built around the America West Vacations brand.[6]

The company also reported service gains in this period. In both 1997 and 1998 the airline had the lowest rate of mishandled bags among major U.S. airlines as measured by the Department of Transportation. In the same two years it ranked first in customer satisfaction among major airlines for flights of 500 miles or less in a study by Frequent Flyer magazine and J.D. Power.[6]

Goodmanson resigned from his positions with the company and its subsidiaries, and from its board, in April 1999. Options over 103,333 shares lapsed on his resignation.[7]

DuPont (1999 to 2009)

Appointment

Goodmanson joined DuPont on May 1, 1999.[8] In an offer letter dated April 22, 1999, the company confirmed his acceptance of "the position of Executive Vice President and Chief Operating Officer for certain DuPont chemicals and materials business segments". The letter set his salary at $550,020 a year, guaranteed minimum variable compensation for 2000 and 2001, and granted him 150,000 stock options.[16] The company's 2000 proxy statement said it "generally does not enter into employment agreements with executive officers" but had done so for Goodmanson as "a mid-career hire". The agreement guaranteed him salary and bonus of $1,150,020 a year through December 2001 and enhanced severance if he was dismissed before May 1, 2004.[8]

Boise Cascade, on whose board he then sat, described his early DuPont roles in a 2003 filing. It said he joined DuPont in May 1999 as an executive vice president and co-chief operating officer, and had been executive vice president and chief operating officer since February 2000.[17] DuPont's executive officers, Goodmanson among them, served as members of the company's Office of the Chief Executive under chairman and chief executive Charles O. Holliday.[18]

Responsibilities

Goodmanson often spoke for DuPont to investors on operations. On May 23, 2001 he presented the company's operating priorities to the Goldman Sachs Chemical Investors Forum in Boca Raton, Florida, during an economic downturn. He listed the priorities as differential business management strategies, stronger commitments to customers, cost controls and productivity initiatives, and "continuing strong accountability for leadership". He told the forum: "The U.S. manufacturing sector has been in recession since late last year, and we have been very clear that we entered the second quarter of 2001 expecting an environment at least as challenging as in the first quarter."[19]

By late 2004, according to Rio Tinto, he was responsible for "the non-US operations of DuPont, with a particular focus on growth in emerging markets". Rio Tinto added that he had "played a major role in the recent restructuring of DuPont's businesses".[13] Rio Tinto's 2010 annual report said he had also been responsible for a number of DuPont's global functions.[9] From 2003 to 2009, while still at DuPont, he was an economic adviser to the governor of Guangdong Province, China.[9][12]

In July 2004 DuPont signed a retention agreement with him. It extended his enhanced severance protection to May 1, 2009 and promised him a special award of $1,000,000 if he stayed until that date. In return he accepted a one-year non-compete, non-disparagement and non-solicitation commitment after leaving.[20] He stayed past May 1, 2009 and was paid the $1,000,000 award that year.[21]

Goodmanson was still executive vice president and chief operating officer in February 2009, when DuPont's annual report listed Ellen Kullman as its chief executive officer.[22] In its review of 2009, DuPont's compensation committee credited him with having "consistently sustained focus on productivity opportunities" and having "drove accomplishment of fixed cost reductions and productivity improvements in excess of $1 billion throughout the organization in 2009". It also said he had "led improved operating performance and achieved significant cost savings for several of the Company's Business Units", with "strong leadership on streamlining inventory projects".[21]

Retirement and consultancy

In October 2008 DuPont disclosed that Goodmanson was expected to retire during 2009. To ensure "his active participation on behalf of the Company in ongoing litigation and other business matters", it approved a three-year consulting agreement to take effect when he retired.[23] On August 13, 2009 Kullman announced a streamlined organisation with a new leadership team, and said Goodmanson would "pursue his plans to retire, effective Sept. 30". At the same time Thomas M. Connelly took on the integration of sourcing, logistics and operations functions.[24] After his retirement, executive vice president Jeffrey L. Keefer took over responsibility for DuPont's productivity efforts.[21]

The consulting agreement was signed by Kullman and accepted by Goodmanson on September 23, 2009. It ran from October 1, 2009 to September 30, 2012 and covered "litigation support and business projects" identified by Kullman. It paid an annual retainer of $200,000 plus $2,000 for each day he was actively involved in such projects, and included non-competition and non-solicitation covenants.[10][25]

Leadership and management style

The public record of Goodmanson's management approach comes mainly from company filings and his own investor presentations. Both point to a focus on operations and cost. In his 2001 address to chemical industry investors he called "the company's aggressive focus on business fundamentals and execution" the best way to deal with the downturn and prepare for recovery. He noted that a weak economy also gave DuPont openings: it could buy consumer advertising at lower media rates, bring forward information technology investment at lower unit costs, and reschedule plant maintenance into idle production time.[19]

At America West his period as chief executive coincided with the airline promoting its cost advantage over other major carriers and running a pay-for-performance system for non-union staff. Under that system, employees earned "AWArd Pay" bonuses of between 5 and 25 percent of base pay when annual targets were met or exceeded. After the company's record 1998 results, the airline paid AWArd Pay bonuses equal to 12.65 percent of eligible employees' 1998 base pay, the highest it had paid.[6] At DuPont his last year was described in terms of productivity, fixed cost reduction and inventory streamlining across business units.[21]

Major deals and strategic decisions

Rio Tinto's 2004 announcement credited Goodmanson with "a major role in the recent restructuring of DuPont's businesses", and said his role then centred on DuPont's growth outside the United States and particularly in emerging markets.[13] In 2009, his last year, DuPont reorganised under Kullman. The company regrouped into 14 businesses under new presidents and moved to reporting aggregated segments, and Goodmanson's operations remit was redistributed among other executives on his retirement.[24][21]

At America West the main strategic steps during his tenure were growth at the Phoenix and Las Vegas hubs, alliances with other carriers, and the creation of The Leisure Company in January 1998. Between 1996 and 1998 the airline increased its available seat miles by 25 percent, with most of the growth focused on its hubs.[6]

Financial and market performance

America West Holdings' results improved in each year that Goodmanson held senior office there. According to its annual report for 1998, the group's operating revenues were:[6]

  • 1996: $1.74 billion, with net income of $8.5 million
  • 1997: $1.87 billion, with net income of $75.0 million
  • 1998: $2.02 billion, with net income of $108.6 million

The company called its 1998 pretax income, net income and revenues records. Diluted earnings per share rose 47 percent to $2.40 in 1998, from $1.63 in 1997. The group employed 12,204 people at December 31, 1998. The airline employed 9,185 full-time and 2,682 part-time staff, equal to 10,098 full-time employees.[6]

Compensation

At America West, Goodmanson received a salary of $500,000 and a bonus of $75,000 for 1997. For 1998 he received a salary of $516,667 and a bonus of $340,550, and in March 1998 the board granted him options over 110,000 shares.[7]

At DuPont his 1999 compensation for the eight months he worked there was a salary of $366,680 and a bonus of $550,000, which included a one-time signing bonus of $100,000. He also received restricted stock units valued at $988,666 at year end and options over 150,000 shares.[8] DuPont's later proxy statements reported his total compensation as $3,612,469 for 2006 and $4,420,156 for 2007.[20] They gave $4,684,187 for 2008, including a salary of $865,992.[26] For 2009, his partial final year, the total was $5,111,884, including the $1,000,000 retention payment; the same filing restated his 2008 total as $4,336,118.[21]

Board memberships and outside roles

America West

Goodmanson was a director of America West Airlines from October 15, 1996 and later of America West Holdings, until he resigned from the board in April 1999.[6][7]

Boise Cascade and OfficeMax

Goodmanson joined the board of the forest products and office supplies company Boise Cascade in 2000.[17] Boise Cascade sold its forest products assets to affiliates of Madison Dearborn Partners and renamed itself OfficeMax Incorporated. He resigned as a director effective October 29, 2004, "due to prospective scheduling conflicts that would limit his ability to attend board and committee meetings".[27]

Rio Tinto (2004 to 2016)

Goodmanson was appointed to the boards of Rio Tinto plc and Rio Tinto Limited with effect from December 1, 2004, while still at DuPont.[13] He joined the board's Remuneration committee from that date and became chairman of its Committee on social and environmental accountability.[28] That committee oversaw "management processes, standards, and strategies designed to manage social and environmental risks". Its remit covered safety, health, employment practices, relations with neighbouring communities, the environment, human rights, land access, political involvement and sustainable development. In 2010 it met six times, and Goodmanson attended all eight board meetings that year. He also sat on the Remuneration committee, and on the Nominations committee, which was opened to all non-executive directors from January 1, 2010.[9] The body was later renamed the Sustainability Committee, and he remained its chairman.[4]

On March 1, 2016 Rio Tinto announced that Goodmanson would not seek re-election and would retire at the close of the Rio Tinto Limited annual general meeting in Brisbane on May 5, 2016, with Megan Clark succeeding him as chairman of the Sustainability Committee. Chairman Jan du Plessis said: "I am very grateful to Richard for his considerable contribution to Rio Tinto over many years. He provided tremendous support during his tenure, notably as chairman of the Sustainability Committee." The company said no payment for loss of office would be made.[11] Companies House records his resignation as a director of Rio Tinto plc on May 5, 2016.[1]

Qantas (2008 to 2019)

Qantas chairman Leigh Clifford announced the appointment of Goodmanson and Barbara Ward as non-executive directors on June 19, 2008. Clifford said the "business skills and experience of both individuals, including in the aviation and transport industries, will add to the diversity of experience and corporate skill of the Board".[29] He initially sat on the Remuneration Committee. Shareholders were asked to elect him at the November 28, 2008 annual general meeting in Brisbane, where he said he looked forward "to contribute my extensive international and airline experience".[3]

By 2011 he was a member of both the Remuneration Committee and the Safety, Health, Environment and Security Committee.[30] When he stood for re-election in 2014 he was chairman of the Safety, Health, Environment and Security Committee and a member of the Nominations Committee. He held both roles again at his 2016 re-election.[5][12] He stood for re-election by rotation in 2011, 2014 and 2016 and stayed on the board until 2019.[30][5][12] He retired from the Qantas board on October 25, 2019, at the close of that year's annual general meeting, after 11 years. Chairman Richard Goyder said: "Richard brought a wealth of experience to the Board and to several committees, we thank him sincerely for his service and wish him well for the future."[2]

Other roles

Goodmanson was a director of the United Way of Delaware from 2002 to 2009 and its chairman from 2006 to 2007. He was an economic adviser to the governor of Guangdong Province from 2003 to 2009.[9]

Controversies

On July 15, 1998, while Goodmanson was chief executive, America West Airlines settled disputes with the Federal Aviation Administration over alleged maintenance violations. Under the settlement the airline did not admit wrongdoing. It changed its maintenance oversight and paid a civil penalty of $2.5 million, and a further $2.5 million penalty was to be forgiven once it met the terms of the agreement.[6]

On April 25, 2005, a shareholder derivative action, Homstrom v. Harad, was filed in the Circuit Court of Cook County, Illinois. It named Goodmanson among a large group of current and former OfficeMax and Boise Cascade officers and directors. The complaint asserted claims including breach of fiduciary duty and unjust enrichment and sought unspecified damages. OfficeMax said it was advancing the defendants' legal fees under its bylaws. The company's 2008 proxy statement still listed the case as pending, and no finding against Goodmanson was reported in the filings reviewed.[31]

Personal life

Goodmanson holds both Australian and United States citizenship.[12] Companies House records his nationality as American and his place of residence, during his Rio Tinto directorship, as the United States.[1] When he left DuPont, the company noted that most of his consulting work was expected to be done at his primary place of residence, and it provided him with office space in Wilmington, Delaware.[25]

Philanthropy

Goodmanson was a director of the United Way of Delaware, the state's branch of the United Way charity network, from 2002 to 2009, and chaired it from 2006 to 2007.[9] The Qantas notice of meeting in 2008 described him as its past chair.[3]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 <ref>"Richard Roy GOODMANSON personal appointments".Companies House.Retrieved October 29, 2026.</ref>
  2. ↑ 2.0 2.1 <ref>"Retirement of Richard Goodmanson".Qantas Airways Limited, via Australian Securities Exchange.October 25, 2019.Retrieved October 29, 2026.</ref>
  3. ↑ 3.0 3.1 3.2 3.3 3.4 <ref>"Qantas Notice of Meeting 2008".Qantas Airways Limited.2008.Retrieved October 29, 2026.</ref>
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 <ref>"Rio Tinto 2015 Annual report (Exhibit 15.2 to Form 20-F)".Rio Tinto, via U.S. Securities and Exchange Commission.March 3, 2016.Retrieved October 29, 2026.</ref>
  5. ↑ 5.0 5.1 5.2 5.3 <ref>"Qantas Notice of Meeting 2014".Qantas Airways Limited.September 22, 2014.Retrieved October 29, 2026.</ref>
  6. ↑ 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 <ref>"America West Holdings Corporation Annual Report on Form 10-K for the year ended December 31, 1998".U.S. Securities and Exchange Commission.March 31, 1999.Retrieved October 29, 2026.</ref>
  7. ↑ 7.0 7.1 7.2 7.3 <ref>"America West Holdings Corporation Proxy Statement (Schedule 14A)".U.S. Securities and Exchange Commission.April 30, 1999.Retrieved October 29, 2026.</ref>
  8. ↑ 8.0 8.1 8.2 8.3 <ref>"E. I. du Pont de Nemours and Company Proxy Statement 2000 (Schedule 14A)".U.S. Securities and Exchange Commission.March 17, 2000.Retrieved October 29, 2026.</ref>
  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 <ref>"Rio Tinto 2010 Annual report (Form 20-F)".Rio Tinto, via U.S. Securities and Exchange Commission.March 15, 2011.Retrieved October 29, 2026.</ref>
  10. ↑ 10.0 10.1 <ref>"E. I. du Pont de Nemours and Company Current Report on Form 8-K".U.S. Securities and Exchange Commission.September 29, 2009.Retrieved October 29, 2026.</ref>
  11. ↑ 11.0 11.1 <ref>"Rio Tinto board changes".Rio Tinto, via U.S. Securities and Exchange Commission.March 1, 2016.Retrieved October 29, 2026.</ref>
  12. ↑ 12.0 12.1 12.2 12.3 12.4 <ref>"Qantas Notice of Meeting 2016".Qantas Airways Limited.2016.Retrieved October 29, 2026.</ref>
  13. ↑ 13.0 13.1 13.2 13.3 <ref>"Board appointment".Rio Tinto, via U.S. Securities and Exchange Commission.December 1, 2004.Retrieved October 29, 2026.</ref>
  14. ↑ <ref>"Richard Goodmanson".University of Queensland Alumni and Community.Retrieved October 29, 2026.</ref>
  15. ↑ 15.0 15.1 15.2 15.3 15.4 15.5 <ref>"America West Holdings Corporation Proxy Statement (Schedule 14A)".U.S. Securities and Exchange Commission.April 3, 1997.Retrieved October 29, 2026.</ref>
  16. ↑ <ref>"E. I. du Pont de Nemours and Company Annual Report on Form 10-K for 1999, Exhibit 10.11".U.S. Securities and Exchange Commission.March 17, 2000.Retrieved October 29, 2026.</ref>
  17. ↑ 17.0 17.1 <ref>"Boise Cascade Corporation Amended Annual Report on Form 10-K/A for 2002".U.S. Securities and Exchange Commission.November 3, 2003.Retrieved October 29, 2026.</ref>
  18. ↑ <ref>"E. I. du Pont de Nemours and Company Annual Report on Form 10-K for 2001".U.S. Securities and Exchange Commission.March 21, 2002.Retrieved October 29, 2026.</ref>
  19. ↑ 19.0 19.1 <ref>"DuPont Chief Operating Officer Addresses Goldman Sachs Chemical Investors Forum (Form 8-K)".E. I. du Pont de Nemours and Company, via U.S. Securities and Exchange Commission.May 23, 2001.Retrieved October 29, 2026.</ref>
  20. ↑ 20.0 20.1 <ref>"E. I. du Pont de Nemours and Company Proxy Statement 2008 (Schedule 14A)".U.S. Securities and Exchange Commission.March 20, 2008.Retrieved October 29, 2026.</ref>
  21. ↑ 21.0 21.1 21.2 21.3 21.4 21.5 <ref>"E. I. du Pont de Nemours and Company Proxy Statement 2010 (Schedule 14A)".U.S. Securities and Exchange Commission.March 19, 2010.Retrieved October 29, 2026.</ref>
  22. ↑ <ref>"E. I. du Pont de Nemours and Company Annual Report on Form 10-K for 2008".U.S. Securities and Exchange Commission.February 12, 2009.Retrieved October 29, 2026.</ref>
  23. ↑ <ref>"E. I. du Pont de Nemours and Company Current Report on Form 8-K".U.S. Securities and Exchange Commission.October 6, 2008.Retrieved October 29, 2026.</ref>
  24. ↑ 24.0 24.1 <ref>"DuPont Takes Actions to Capitalize on Global Growth Opportunities (Form 8-K, Exhibit 99.1)".E. I. du Pont de Nemours and Company, via U.S. Securities and Exchange Commission.August 13, 2009.Retrieved October 29, 2026.</ref>
  25. ↑ 25.0 25.1 <ref>"Consulting agreement letter, Exhibit 99.1 to Form 8-K".E. I. du Pont de Nemours and Company, via U.S. Securities and Exchange Commission.September 22, 2009.Retrieved October 29, 2026.</ref>
  26. ↑ <ref>"E. I. du Pont de Nemours and Company Proxy Statement 2009 (Schedule 14A)".U.S. Securities and Exchange Commission.March 20, 2009.Retrieved October 29, 2026.</ref>
  27. ↑ <ref>"OfficeMax Incorporated Current Report on Form 8-K".U.S. Securities and Exchange Commission.November 4, 2004.Retrieved October 29, 2026.</ref>
  28. ↑ <ref>"Rio Tinto 2004 Annual Report on Form 20-F".Rio Tinto, via U.S. Securities and Exchange Commission.June 27, 2005.Retrieved October 29, 2026.</ref>
  29. ↑ <ref>"New members of Qantas' Board".TravelMole.June 19, 2008.Retrieved October 29, 2026.</ref>
  30. ↑ 30.0 30.1 <ref>"Qantas Notice of Meeting 2011".Qantas Airways Limited.2011.Retrieved October 29, 2026.</ref>
  31. ↑ <ref>"OfficeMax Incorporated Proxy Statement 2008 (Schedule 14A)".U.S. Securities and Exchange Commission.March 10, 2008.Retrieved October 29, 2026.</ref>
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