Just over two weeks after revealing its 2009 profit and losses (but promising to improve), poker machine group, Aristocrat Leisure has revealed a major board shake-up with three directors to retire.
The retirees include current chairman, David Simpson, who will step down once a successor can be found.
That is expected to happen by the end of this year.
Two new directors have already been announced and will be up for election at the AGM next month.
A complicating matter for directors of Aristocrat is that they have to get clearance from gambling control authorities in multiple jurisdictions in Australia, Asia (especially Japan) the US and Europe.
As an example, Mr Simpson was nominated to join the Board in July 2003 and it took seven months to get the necessary regulatory approvals in place by February 2004
The company’s shares rose 4c to $4.46.
The company told the market that Mr Simpson had "indicated that after 6 years in the role he will step down as Chairman of the Company upon the appointment of a successor, and at that time he also wishes to retire as a director.
"Planning for the selection of a new Chairman has already commenced and the Board expects to announce Mr Simpson’s successor towards the end of 2010.
"The Board is also in the early stages of a search to identify an additional director to fill the casual Board vacancy which will be created by Mr Simpson’s impending retirement.
Mr Simpson has served as Chairman since July 2004. Mr Simpson will stand for re-election as a Director of the Company at the forthcoming Annual General Meeting in April 2010 (AGM).
"However, as indicated, he does not expect to serve a full term as Chairman.
"Mrs Penny Morris AM has also indicated that she will retire from the Board at the conclusion of the AGM in order to focus on her other board responsibilities," the company said.
"Mrs Morris was nominated to join the Board in August 2003 and received the necessary regulatory approvals in February 2004.
"Mrs Morris has served on various Board committees with distinction during her long tenure, most notably as Chair of the Audit Committee."
And Aristocrat said that a third director, Mr Bill Baker "has also indicated that after almost 12 years service he wishes to retire from the Board this year. The precise timing of Mr Baker’s retirement has not yet been determined.
"Mr Baker was nominated to join the Board in August 1998 and received the necessary regulatory approvals in May 1999. Mr Baker has served on various Board committees with distinction during his long tenure, most notably as Chair of the Regulatory and Compliance Committee.
The two new proposed directors, Dr ID Blackburne and Mr SW Morro were recently nominated as directors’ elect.
Their appointments are subject to certain pending regulatory pre-approvals. Each of them will stand for election as directors at the AGM subject to regulatory approval.
Dr Blackburne could be a new chairman, he already chairs CSR Ltd.
