Herald business leader of the year: Hart picked from extraordinarily strong field

By JIM EAGLES business editor

Why would a newspaper pick a man who rarely gives interviews as its Business Leader of the Year - especially when there are plenty of well-qualified, media-friendly candidates for the title?

There are four good reasons for selecting Graeme Hart in spite of his reticence.

First, if money is the scorecard by which to judge business success, he must be the winner.

The most recent NBR Rich List named Hart as the country's wealthiest man, with a fortune estimated at $1.2 billion.

That's not bad for someone who left school at 16 to become a panelbeater's tow-truck driver.

Second, he provides a rare example of a New Zealand business operator who has done well across the Tasman. After cashing in his first fortune, largely acquired courtesy of the former Government Printing Office, he risked the lot by spending $300 million on a stake in moribund Australian food business Burns Philp.

The share price dived and Australian financial commentators sneered. But in five years Hart rebuilt the company and the share price, turning himself into a billionaire in the process - and suddenly the same commentators were applauding.

Third, in the past few months he has pulled off three huge deals, buying dominant South American yeast business Fleischmann's, NZ Dairy Foods and Australasian food giant Goodman Fielder.

The mere fact that Hart succeeded in buying Goodman - a company three times the size of Burns Philp - in the teeth of bitter opposition from the Goodman board and considerable media scepticism was an achievement in itself, never mind the others.

Hart has also earned points for the speed and decisiveness of the restructuring, mainly on the other side of the Tasman, aimed at knocking the new conglomerate into shape.

The jury is still out on how well it is going - Burns Philp's share price is hovering around 60Ac, compared with the 52-week high of 92Ac and a low of 42Ac - but given Hart's record, you'd have to back him to make it work.

Fourth, those deals suggest that Hart has a global vision.

As Herald columnist Brian Gaynor commented shortly after the latest takeover, "Hart is young enough to create a major international food giant and the combination of Burns Philp, Goodman Fielder and New Zealand Dairy Foods is a good start."

That is an exciting prospect.

Those four factors convinced the Business Herald team to pick Hart from an extraordinarily strong field.

The other finalists for the title were:

* Ralph Waters, the energetic and blunt-spoken Australian at the helm of Fletcher Building.

The judges for the Deloitte/Management magazine business awards said Waters' performance in transforming a tired, under-achieving enterprise into a high-performance company made him their business leader of the year.

As well as turning the company around, he has made a success of last year's acquisition of Laminex and this year snapped up Tasman Building Products.

* John Bongard, chief executive of Fisher & Paykel Appliances, a Kiwi icon that continues to thrive internationally, setting a great example of how to crack overseas markets and boost profits while still protecting its friendly image.

* Mark Weldon, head of the stock exchange, continues to pour energy and ideas into revitalising our capital markets.

This year saw, among other things, a new governance code and enforcement structure, a rebranding as the New Zealand Exchange, the launch of a new secondary market and a cheeky bid to take over the running of the wholesale electricity market.

* Tony Timpson stood down this year as chairman of Cavalier Carpets after being the driving force behind its success over many years.

Timpson's nomination was really a recognition of his lifetime contribution to business on many levels.

The other nominees were:

Fashion designer Karen Walker, whose brand continues to thrive.

National Bank's hugely respected chief executive, Sir John Anderson.

Sky Television head John Fellet, who has put the business back in the black.

The other half of the F&P split, Healthcare chief executive Michael Daniell.

GPG's New Zealand head, corporate maverick Tony Gibbs.

Receiver extraordinaire Michael Stiassny, who finally sold the Central North Island Forest.

Alan Frampton, who has stepped down as head of the amazingly successful Tatua dairy company.

Port of Tauranga chief executive Jon Mayson, who not only runs a good company but is becoming influential in the transport industry.

Scott Technology head Kevin Kilpatrick, the hugely enthusiastic boss of a company that is increasingly making its way in the global market.

Fisheries Commission chairman Shane Jones, who finally got through the legislation that will unlock the potential of Maori fishing assets.

Taylors Group head Maurice Nicholson, who has transformed it into a highly profitable company.

Australian Paul Little, Toll Holdings' boss, who ended the agony of Tranz Rail and looks set to change the face of our transport industry.

And, demonstrating why Cavalier enjoys great respect, Alan James, who is stepping down as chief executive to replace Timpson as chairman.