The founder and head of a stock exchange-listed travel company reeling from an overbilling scandal by its British subsidiary is retiring, effective immediately.
Jamie Pherous will transition to a six-month-long strategic advisory role with Corporate Travel Management, which he built over 32 years from a small Brisbane agency into one of the world's biggest travel service providers.
CTM was last valued at $2 billion, but its shares have been frozen on the Australian Securities Exchange since August 26 as auditors probe financial irregularities at its UK division.
The company stood down its chief executive for the UK and Europe, Michael Healy, on November 28 before terminating his employment on December 19.
It then announced it would refund several large customers as much as Stg 77.6 million ($A157 million) relating to contracts carried out by its UK group from 2021 to 2023.
The UK Home Office, which in 2023 awarded CTM a Stg 1.6 billion ($A3 billion) contract to place refugees and asylum seekers in accommodation, had confirmed the Australian company notified it in November that it had been overbilled.
KPMG is conducting an ongoing forensic audit and CTM said in December it was too soon to say whether any criminality was involved. None of the company's leaders have been accused of wrongdoing.
As well, there has been no suggestion that any of CTM's Australian-based head office management knew of the UK irregularities before they were discovered in August during an audit.
Ana Pedersen, CTM's chief commercial officer, has been appointed acting group chief executive while the company searches for a permanent replacement.
Former president and chief executive of BCD Travel, John Snyder, will serve as a special advisor during the transition period.
CTM chairman Ewen Crouch said the board had determined, in consultation with Mr Pherous, that now was the time for new leadership.
"We recognise the frustration and disappointment of our shareholders," he said, adding the company was doing all it could to reinstate CTM's shares for trading on the Australian bourse as soon as possible.
Mr Pherous said he had decided it was in the best interest of the company for him to retire to allow new leadership to focus on the challenges ahead.
Ms Pedersen, who joined CTM in October, said her immediate priority would be finalising its accounting issues so its shares, which last traded at $16.07, could be reinstated.
"At the same time, we remain laser-focused on client delivery," she said.
