You wouldn’t credit it, but Elders (ELD) has managed to produce another surprise – no, it’s not more losses, another disastrous investment or unexplained problem in the ever diminishing empire.
It’s the immediate departure of CEO Malcolm Jackman, the man who has at least tried to clean up the mess that countless incompetent former managements and boards had left behind, starting with John Elliott two decades or more ago.
Elders has been in a self liquidation situation for the past five years, doing what a receiver manager would normally do. Mr Jackman filled the post of the receiver manager
The news didn’t worry the market, the shares edged up half a cent (which for Elders was a a big rise of more than 4%) to 12c, where they were 10 days ago when the forecast half billion loss was confirmed.
ELD 5Y – CEO Jackman to leave a fading Elders
In a statement yesterday, the rural services company said discussions had been held earlier in the year regarding Mr Jackman’s retirement.
"The decision to bring forward Mr Jackman’s retirement from the business has been reached after further discussions over the last week," the statement said.
Elders said chairman Mark Allison will chair an executive committee, comprising all members of the company’s leadership team, until a replacement is found.
"The restructure and refocusing of Elders on its core rural services business and markets is now in its very final stages and is on track for completion in early 2014, so this is an appropriate time for Malcolm to step down," Mr Allison said.
"On behalf of the board, I extend our sincere thanks and respect to Malcolm for his leadership and commitment to the company over the five years since he was appointed as CEO in September 2008."
Mr Jackman said, "It has undoubtedly been a very difficult and challenging journey to restructure Elders and to return it to its core business focus, but we are very confident that objective has all but been attained. As a result, I have agreed with the Board that this is an appropriate time to step down and to focus on other emerging business opportunities.
“I extend my sincere thanks to the leadership team, Elders staff, agents and our loyal customers for their support, energy and faith in this great Company over these last five years of change for the better."
There was no elaboration about the "further discussions over the last week," since the loss announcement last Monday week. But as Mr Jackman is now back in Sydney and no longer living in Adelaide, you can bet the decision to part company was pretty swift.
Still to come for the company and the board is the results of a review of problems in the live cattle business that has already cost millions of dollars, according to preliminary estimates.
Elders will still occupy the headlines for a while yet.
