Goodman Fielder, the country’s largest listed food group, is leaderless after CEO Peter Margin revealed yesterday that he was leaving after five years at the company.
The news, conveyed to the ASX in a statement yesterday, means the company is now facing rising commodity prices and tightening profit margins without a CEO and a permanent chief financial officer.
CFO David Goldsmith has already announced his departure and the vacant position of head of the ingredients business was filled by a reshuffle announced yesterday of other managers.
A temporary CFO will act until a permanent appointment is made and the board says it will search for a new CEO inside and outside the group.
It’s a big turnover of talent for the baking and ingredients business that has seen its share price fall by more than 17% since early November, from $1.57 to $1.30 by the close yesterday.
The shares lost 4c, or nearly 3%, yesterday.
That fall remains unexplained by the company.
Yesterday’s first announcement said Mr Margin will leave the company at the end of April "to pursue the next stage of his career".
Goodman Fielder chairman Max Ould said Mr Margin had done "an outstanding job of leading the company through its float in late 2005 and establishing it as the leading locally owned food company in Australasia".
"Peter leaves to pursue the next stage of his career and, on behalf of the Board and management, I thank him for his significant contribution to Goodman Fielder and wish him well for the future," Mr Ould said.
An internal and external search process is underway. Goodman Fielder said it expected to announce Mr Margin’s replacement before his departure.
Mr Margin used be CEO of National Foods and in fact followed Mr Mould into the CEO’s role at that company. Another director of Goodman Fielder is Clive Hook, a former finance director of National Foods.
There has been significant selling from two major shareholders.
The NAB cut its stake by nearly 220 million shares in the last month or so of 2010 to 7.28% from 8.84% and Lazard is no longer a substantial shareholder after selling down from 6.31% on December 2 to less than 5% four days later.
