Explosives and mining services group Orica (ORI) yesterday bowed to the inevitable and made acting CEO and former board director Alberto Calderon the company’s full time leader to replace Ian Smith who left in somewhat clouded circumstances in March.
Mr Calderon has been filling the CEO’s role since Mr Smith’s departure due to aggressive behaviour towards members of the company’s senior executive team.
Orica chairman Russell Caplan said in a statement yesterday that Mr Calderon’s appointment was made after an "extensive and rigorous global search".
Mr Calderon spent eight years at BHP, most recently as its group executive and chief executive of aluminium, nickel and corporate development and was considered a contender for the top role that went to Andrew Mckenzie.
"During my time as interim CEO I have been privileged to be able to spend more time with our people, investors and customers, listening to their views," he said in a statement.
"My focus will be on ensuring the execution of Orica’s strategy as we continue on the path to being a simpler, more flexible and efficient company, and a partner of choice for our customers globally. At the same time, I want to ensure a culture of respect, collaboration and performance.”
In fact Mr Calderon impressed many big investors and analysts when handling the company’s recent March half year result and the briefings afterwards.
Yesterday’s statement said Mr Calderon had "been appointed on a rolling contract with no fixed term, on a remuneration package benchmarked to the market. His total remuneration has a higher proportion at risk, subject to him meeting short term and long term performance criteria, to ensure his remuneration aligns with total shareholder value creation."
His big test will be how he handles the forecast downturn in demand for ammonium nitrate, a major commodity for the company used in its explosives business which remains under intense pressure from the slide in mining activity around the world.
Mr Calderon hinted during the recent interim profit briefing that Orica might cut production if demand and prices continue to weaken.
Orica shares though eased 0.9% to $20.95 yesterday in the generally weaker market.
The shares actually almost eliminated losses of more than 2% in early trading and jumped 30c in afternoon trading, despite the wider market’s weakening.
ORI 1Y – Calderon promises a "culture of respect, collaboration and performance"
