Two changes at the top of major Australian companies yesterday have seen retiring National Australia Bank (NAB) chair, Michael Chaney heading back to chair Wesfarmers (WES) – the company he ran, and regional TV group and metro radio broadcaster, Southern Cross (SXL), replacing its long time CEO, Ryhs Holleran in something of a surprise.
Mr Holleran is being replaced by Peter Bush, who was appointed to the company’s board last February in the wake of a deal with its banks to ease the limits on its loans.
Mr Bush will become executive chair of Southern Cross and its clear his task will be to whip the company into shape and cut debt.
Mr Holleran, who has led the now-struggling radio and regional television network since 2009, will leave the company on July 31.
Mr Bush said in a statement to the ASX: "We are very grateful to Rhys for 18 years service as leader of the business in its various forms, and in particular his last six years as chief executive”.
"In this role he has fostered a cohesive team culture and relationships throughout the organisation.
"However, media is an ever changing and challenging sector, requiring a further long term leadership commitment. Rhys and the board have come to the view that a change of leadership is now appropriate for both parties,” Mr Bush said.
The departure of Mr Holleran follows the retirement of long time chairman Max Moore-Wilton earlier this year. So in effect we are getting a cleanout at the top of Southern Cross, which owns the Ten Network’s struggling regional affiliate, plus the 2Day and MMM national radio networks.
Southern Cross shares dipped just on 1% to $1.025 yesterday on the news.
SXL 2Y – Holleran exits struggling Southern Cross
Meanwhile Wesfarmers revealed yesterday that Mr Chaney will return to head up the company’s board after an 11 year absence. He will return next month as a non-executive director, before taking up the chair’s role at the AGM in November, replacing Dr Bob Every.
Mr Chaney was Wesfarmers managing director from 1992 until 2005, when he was succeeded by current managing director Richard Goyder.
Mr Chaney is currently chairman of Woodside and the National Australia Bank, but will retire from the NAB board at the annual meeting in December.
“When I was appointed chairman of Wesfarmers, I declared my main objective was to be custodian of the culture,’ Dr Every said yesterday in a statement. He had been chair since 2008.
“Who better then to succeed me than Michael, who played such a vital role in establishing that culture,” he added.
Wesfarmer’s shares eased by just under 2% to $43.22.
NAB shares remained suspended ahead of their unexpected re-listing later today in the wake of the major part of its $5.5 billion fund raising.
The shares last traded at $35.20 last Wednesday at the close.
