Sydney Gay and Lesbian Mardi Gras has officially appointed Jesse Matheson as its new chief executive, formalising a leadership transition that has unfolded during one of the most turbulent periods in the organisation's recent history.

Mardi Gras director Kyriakos Gold, who is seeking re-election to the charity’s board this month, has threatened to sue the organisation unless it pays him tens of thousands of dollars in compensation for expenses and lost income to respond to what he alleges was a mishandled complaint-handling process examining allegations made against him, the outcome of which remains unclear.