Under-fire Corporate Travel Management founder and boss Jamie Pherous packs his bags

The under-pressure founder and boss of Corporate Travel Management has quit — two months after his company was forced to admit it had overcharged clients more than $150 million.

Jamie Pherous on Monday revealed he would depart his executive and board posts immediately and transition to a strategic advisory role under a consulting agreement that will run for six months.

Chief commercial officer Ana Pedersen, who joined the company just over a year ago, will become acting CEO as the board starts a search for a replacement.

Shares in the $2.3 billion company Mr Pherous launched more than three decades ago in Brisbane have been suspended from trade on the Australian Securities Exchange since August after it hinted at a looming accounting blunder.

In late November it revealed clients — including the UK government — had been overcharged by up to £77.8m ($156m) between financial years 2023 and 2025. The company is yet to reveal if clients were overcharged for work that was performed, or charged for work that wasn’t actually done.

Corporate Travel’s head office first became aware of the irregularities in its European accounts on August 22, when it was told by auditors going over its 2024/25 results.

It hired KPMG to conduct a forensic review of its UK financial statements. KPMG assessed 47,000 documents and analysed 1.5 million sales and purchase transaction lines, representing a total transaction value of more than £400m.

Corporate Travel’s head of European business, Michael Healy, was later stood down.

Mr Healy, who had been with the company for a decade, was given an OBE in the Queen’s New Year 2021 Honours list for his role in helping co-ordinate the repatriation of 38,000 British nationals from 58 countries on 188 charter flights during the COVID-19 pandemic.

At the time, the business warned it did not expect shares to return to trade until some time in 2026 and said it may have to issue a new prospectus disclosing all its issues to convince regulators of its suitable to return to trade.

Mr Pherous on Monday said building Corporate Travel had been “a great privilege”.

“I acknowledge the challenges arising from the recent accounting matters and the company’s suspension, and the impact these have had on our customers, employees and investors,” he said.

“In the best interests of the company, I have decided to retire as chief executive officer to allow new leadership to focus fully on the task ahead.

“I will continue to support the business in my capacity as an adviser and its largest individual shareholder and have a vested interest in CTM’s long term success.”

Chairman Ewen Crouch said the board and Mr Pherous agreed now was the right time to refresh Corporate Travel’s leadership.

But he was unable to give a time frame on a return to trading.

“We recognise the frustration and disappointment of our shareholders and are taking all practical and responsible steps to address the issues that have arisen and support CTM’s shares being reinstated for trading on the ASX as soon as possible,” Mr Crouch said.

“On behalf of the board, I want to thank Jamie for his contribution in founding and growing CTM from a small travel agency in Brisbane to a globally recognised travel management services company. His vision, energy and commitment have been central to the company’s growth over three decades.”

Ms Pedersen said her immediate priorities would be bringing “clarity and confidence” for investors are it prepared to return to the trading board.

“This means finalising our accounting matters with integrity and certainty, and, in partnership with the board, strengthening governance and controls,” she said.

“At the same time, we remain laser-focused on client delivery, which continues uninterrupted, and on supporting our people, who are critical to our success.”