Orica (ORI) has been forced to again sort out a mess of its own making about the CEO’s role, five days after revealing the incumbent Ian Smith was going because of problems with staff relations.
The company yesterday revealed that Mr Smith would depart straight away with former senior BHP Billiton executive Alberto Calderon as its interim boss.
Mr Calderon has been a member of the Orica board since August 2013 and was formerly the boss of BHP’s aluminium, nickel and corporate development divisions.
Ian Smith was ousted following a series of incidents with staff and had been due to front an investor strategy day yesterday and appear at an investment conference in Hong Kong later this week.
Orica emailed investors on Sunday to say that Monday’s briefing has been postponed.
Orica, the world’s biggest supplier of mining explosives, said last week that Mr Smith would stay as long as needed while the board conducted its executive search.
But now the board appears to have accelerated its plans for a “transition” to a new CEO.
ORI 1Y – Alberto Calderon steps up as interim Orica CEO
Orica said yesterday in a statement to the ASX that the board and Mr Smith had “agreed that in the interests of minimising further distractions and enabling Orica to move on”, Mr Smith should leave the company immediately.
He will be paid his contractual entitlements arising from his "termination" plus a $2.5 million payment for severance and his notice period.
Mr Calderon said the "importance of ensuring stability and operational continuity at Orica has been at the forefront of my discussions with the board".
“The ongoing implementation of our strategy will be my priority while the board continues the process of selecting a permanent CEO,” he said in yesterday’s statement.
Orica said yesterday that global markets “remain volatile and uncertain and FY15 [financial year 2015] profit guidance continues to be difficult to provide in these circumstances”.
The company reports half-year earnings for the period ending March 31 on May 12.
Orica shares rose 2.6% to $19.10.
