Fletcher Building announces $95 million restructure plan, plans to cut overheads by $30 million per year.
Fletcher Building has announced a board shakeup, named former PwC chairman Bruce Hassall as its chairman and appointed four other new directors.
Hassell's appointment follows chairman Sir Ralph Norris resigning on the back of nearly $1 billion of losses from big construction contracts like Sky City's convention centre and Christchurch'sJustice Precinct.
Hassall, a Fletcher director since March last year, will take up the top position on the board from September.
Other directors named today include former ASB chief executive Barbara Chapman, Robert McDonald, Douglas McKay and Cathy Quinn.
Two current directors will be stepping down in the next few months - Alan Jackson who will retire after nine years on the board and Cecilia Tarrant who is stepping down after seven years.
The shakeup follows the company revealing its five-year strategy yesterday that includes a $95m restructure.
"When I announced that I would step down as chairman in February I committed to first completing the CEO transition and board refresh I had commenced, and I am pleased with the progress that has been made," Norris told the stock exchange said this morning.
"Our chief executive Ross Taylor is now firmly established in the role and has led the development of a focussed strategy that aims to deliver long-term growth for shareholders," he said.
"Our four new independent directors are high calibre individuals, who bring a mix of commercial, operational and governance expertise, which will greatly enhance the experience and diversity of the Board.
"While our original intention was to seek a director with construction experience, with our appointment of Ross Taylor who has considerable expertise in this area, our decision to exit the vertical construction sector, and a new strategy in place, we believe the appointments we have made will best support the company's new strategic direction.
"I am confident the new chairman and board will provide strong leadership and support to the CEO and Executive in the coming years to further strengthen the business and help Fletcher Building realise its full potential," he said.
New Directors
Barbara Chapman Chapman recently stepped down as managing director of ASB after seven years in the role. Prior to this she was group executive of human resources and group services at ASB's parent company Commonwealth Bank of Australia. She is currently on the boards of Genesis Energy and NZME as an independent director.
Former ASB Bank chief executive Barbara Chapman. Photo / Jason Oxenham.
Robert McDonald McDonald has spent more than twenty years at Air New Zealand, most recently as chief financial officer. He is an independent director of Contact Energy and a director of the Chartered Accountants of Australia and New Zealand. He would take on the role as chair of the Audit and Risk Committee, Fletcher Building said.
Rob McDonald. Photo / file
Doug McKay McKay has held several chief executive roles of major companies in New Zealand and Australia including Lion Nathan, Carter Holt Harvey, Goodman Fielder, Sealord and Independent Liquor. As chief executive of Auckland Council, he led the amalgamation of the super city eight years ago. He is chair of the Bank of New Zealand and Eden Park Trust and an independent director for Genesis Energy, IAG New Zealand and the National Australia Bank.
Doug McKay, former chief executive of Auckland Council. Photo / Richard Robinson
Cathy Quinn Quinn is a high profile commercial and corporate lawyer, leading mergers and acquisitions, private equity teams and the China practice at MinterEllisonRuddWatts where she served as chair for eight years. She is currently a director of Tourism Holdings Limited, and a board member of New Zealand Treasury and the New Zealand China Council.
Cathy Quinn chairwoman of law firm Minter Ellison. Photo / supplied
