Transpacific Industries (TPI) shares fell more than 11% at one stage yesterday after the market surprised by the news that CEO Bob Boucher has resigned from the waste handler for “personal reasons” after just 18 months in the job and will return to the US.
The nation’s biggest waste management company told the ASX Mr Boucher would resign from the end of June 2015 and group chief financial officer Brendan Gill will become acting CEO.
The shares hit a day’s low of 68.5c and closed at 70.5c, down 9.6%.
TPI 1Y – Transpacific on the hunt for new boss
Transpacific chairman Martin Hudson said: “The Board was very disappointed to receive Bob’s resignation, but understands his need to return home for personal reasons. Bob has achieved a great deal in the 18 months he has led Transpacific and I know that he was looking forward to seeing the results of his reform efforts come to fruition. He leaves the Company in much better shape than when he commenced, and positioned for a return to growth over the medium to long term."
In January Mr Boucher was given a new four-year contract with the company, offering hefty bonus payments linked to delivering a four-point strategy to grow revenue, boost productivity, make tuck-in acquisitions and improve landfill capacity.
The Board will conduct a global search process for a candidate to succeed Mr Boucher, under which internal and external candidates will be considered.
TransPacific said that as a result of his resignation, Mr Boucher will not receive any bonus payments or short term or long term incentive payments, including those in respect of the 2015 financial year. No severance or termination payments will be made to Mr Boucher.
