Blackmores shares dropped more than 5% at one stage yesterday on the news CEO, Christine Holgate will leave the vitamins and supplementary products company in September to head up Australia Post. Blackmores shares fell to a day’s low of $89.95 before bouncing to close down 4.4% at $89.81. That took the year’s loss so far to more than 13%.
Yesterday’s news came as a surprise to many investors and followed the 18 month slid ein the price of Blackmore shares as the bloom has gone off the boom in sales into China and other parts of the region.
While the company is expected to earn an estimated full year profit of well over $100 million, the days of the shares trading above $200 each are long gone.
Blackmores confirmed Ms Holgate’s departure“with regret” and said former CEO,Marcus Blackmore will fill the gap temporarily.
Ms Holgate, who led the company to a huge surge in growth during her nine years in the top job, will leave on September 29. That’s after the company reports its 2016-17 results in md August.
Blackmore, who has been on sabbatical leave from his role as chairman, will return to become interim chief executive.
At Australia Post, Holgate will get a base salary of $1.375 million a year, with the potential to double that as a bonus. That is a lot less than the $5.6 million earned by the man she succeeds, Ahmed Fahour.
Australia Post chairman John Stanhope said yesterday Ms Holgate was picked following a global search by the board.
"Over the past seven years, we have transformed Australia Post into Australia’s leading parcels and e-commerce company and introduced critical reforms to the letters service," he said.”With post now entering a new stage in our transformation, it’s the perfect time for Christine to take the helm,” he said in a statement.
Mr Stanhope said Ms Holgate had a track record of delivering results in “large, complex organisations” and the board was impressed by her experience of working very successfully in a range of different industries that are highly regulated,” he said. An area of especial interest was her performance at a company that has grown its links to Asia.
