Amcor (AMC) chief executive Ken Mackenzie will step down after ten years in the job during which time he steadied the company in the wake of the GFC, then split it to achieve operating and geographic efficiencies through the spin-off of some of its Australian and Asian businesses into Orora Ltd (ORA), and generated more than $8 billion of extra value for shareholders.
It’s quite an impressive performance and happened without the hue and cry and media trumpeting of lesser performing CEOs such as Terry Davis, the former Coca Cola Amatil CEO, or Marius Koppers at BHP Billiton, or Tom Albanese at Rio Tinto.
Mr Mackenzie will leave the packaging giant at the end of the 2015 financial year in June and will be replaced by the company’s chief financial office, Ron Delia.
Mr Delia, joined Amcor in 2005 and has been CFO since 2011. He will receive fixed remuneration of $US1.7 million ($2.1 million), though that could more than triple through short and long term incentives.
Amcor Chairman Graeme Liebelt said in a statement that “Mr MacKenzie felt it was the right time to pass the baton to the next CEO and the board thanks Mr Mackenzie for his extraordinary contribution to the Company over the past 10 years’.
The spin off of the assets into Arora was announced in 2013 and crowned Mr McKenzie’s time at Amcor during which he sold more than $1billion of non-core assets, cut costs and made more than 20 acquisitions that have been successfully integrated into the group.
Amcor shares ended down nearly 4.3% yesterday at $12.32 in something of an illogical reaction, and Orora shares lost 1.4% to end at $2.03.
AMC vs ASX200 2Y – Amcor boss passes the baton
Orora had a value of $2 billion when the spin-off happened in 2013. At yesterday’s close it had a value of $2.4 billion.
During Mr McKenzie’s tenure at Amcor, the company’s shares have more than doubled form just over $6 and hit an all time high a few weeks ago of $13.70.
So Mr Mckenzie is going out at the top, having made patient Amcor shareholders very wealthy in his decade at the business.
Late yesterday struggling contractor and civil engineer, Macmahon Holdings (MAH) revealed its CEO had quit immediately – without any explanation. Macmahon said CEO, Ross Carroll had resigned from the Company, "effective today."
"Mr Carroll will receive a severance package in accordance with his employment contract and applicable laws,” Macmahon said.
Mr Carroll joined the company as chief financial officer in 2006 before being promoted to chief operating officer for mining in 2011. He became CEO in September 2012, shortly after Macmahon reported a big profit downgrade of between $20 and $40 million.
The company returned to profitability last financial year but continues to be hit by the decline in the mining services sector, forecasting a tough year at November’s AGM.
The Company’s Chairman, Mr Jim Walker will act as Executive Chairman until a replacement CEO is appointed. There will be no changes to Mr Walker’s remuneration during this period.
And as foreshadowed at the Company’s AGM last November, non-executive Director and Deputy Chairman, Barry Cusack, also resigned from the Macmahon Board, effective yesterday "To reduce costs, the Company does not intend to seek a replacement for Mr Cusack’s position at this time,” the company said in a statement.
In the statement, Mr Walker said: “The Board is committed to implementing cost saving measures across the business as the Company navigates the current suppressed market for mining services.”
“The Board wishes to express its thanks to Mr Carroll for his service to Macmahon over the past eight years and wishes him well for his future endeavours.”
“Similarly, the Board thanks Mr Cusack for his contribution to the Company during his service as a director over the past 12 and half years.”
Macmahon shares fell 1.5% to 6.2 cents yesterday.
