KEY POINTS:
Vector chairman Michael Stiassny and chief executive Mark Franklin fronted together today to explain why Mr Franklin was following the company's chief financial officer and three board members out the door.
Mr Franklin said he had been in the job for nearly five years and "from the outset
Michael and I discussed the fact that this would probably be a five-year role."
Mr Stiassny, who is also New Zealand Racing Board chairman, said: "It's like a race horse."
"You can buy the right horse but then you have to make it run well."
Mr Franklin oversaw the takeovers of United Networks and NGC and a stock exchange float.
The company now needed to tighten up as it didn't have much control over its revenue line because of regulation.
"Mark's saying, 'I don't want to be the man who tightens those screws, or whatever, to that degree'," Mr Stiassny said.
Vector shares fell 1c to $2.65. The share price took a hit last December when there was a meltdown in the boardroom. Three independent directors resigned, citing concern with governance and the leadership of Mr Stiassny.
There had been too much speculation about the division of roles between the chairman and executive, Mr Franklin said today.
"I smile at that. Both me and the executive team are very clear on what our roles are and we spend a lot of time with the board talking about strategy, rather than operational issues."
Mr Franklin said his relationship with Mr Stiassny had been "interesting".
"I don't think you have to be best friends between chairman and CEO. You just have to understand the roles that you both play."
Mr Stiassny said the biggest issue the company faced was the regulatory environment.
And there was work to be done in "getting the boat trimmed."
"Mark and I aren't hiding from that. That is something that someone else is going to do. Not Mark."
Mr Franklin, who is an Australian, said his family liked living in New Zealand and he would seek opportunities here first.
Mr Franklin will remain with the company for several weeks to ensure an orderly hand-over. Vector declined to disclose his exit package.
Chief operating officer Simon Mackenzie is acting CEO while the company searches for a replacement.
In the nine months to March 31, Vector reported a net profit after tax rose 18.4 per cent to $39.6 million and it is forecasting an increase of at least 28 per cent in the full-year.
Vector has been in dispute with the Commerce Commission, which argued the company abuses its monopoly position and favours Auckland customers.
The company at one point threatened to suspend $400 million of investment. It has since offered to rebalance charges but the Commission is yet to approve this.
- NZPA
