Search for CEO stalls at Fenner following boardroom strife
BOARDROOM struggles have pointed to behind-the-scenes strife at belting manufacturer Fenner.
Shareholder Teleios Capital Partners has been attempting to nominate a board member, but has been met with major opposition by the current Fenner board, which says that the dispute is stalling the search for the company’s new chief executive officer.
The announcement that non-executive director Vanda Murray OBE would be taking on the role of non-executive chairman full time having been acting as such since June 2016, after a “rigorous process using external head-hunters” was overshadowed by apparent disputes over an NED appointment.
On Friday the Hessle-based company announced that it had been told by shareholder Teleios Capital Partners that it would be putting forward Michael E. Ducey for the role of non-executive director at the company’s AGM due to be held on 11 January 2017.
The board today said it “strongly opposes” the appointment of Mr Ducey. It said that he would not add to the current skill set on the board, and that the Fenner board do not consider him to be independent of the shareholder nominating him.
Fenner said it was searching for its own candidate for independent non-executive director, one who will be a “complementary fit” with a background in Fenner’s growth sectors and a strong track record.
It said the appointment of Mr Ducey would not be in the interests of shareholders, and that the ongoing process for a new CEO has been “materially disrupted” by the shareholders attempts to get Mr Ducey on the board.
Currently Mark Abrahams has agreed to remain as CEO.
The board said that they believed that together “these changes are the best way to build on the progress and momentum achieved over the last year.”
Fenner has been hit by downturns in the US mining and worldwide oil and gas sectors. Revenues dropped nearly £90m in its most recent full year results compared to 2015 and losses plummeted to £30m from £5.3m the year before.
Commenting on her appointment, Vanda Murray said “I am delighted to have been asked by the Board to accept the role of Chairman. I am committed to taking the Company forward, building on the progress we are making and creating value for our shareholders.”
Fenner also confirmed this morning that Chris Surch has been appointed as the senior independent director and that Geraint Anderson will become the chairman of the remuneration committee.
