 will accelerate its leadership succession plan with managing director Chris Ellison making the decision to step down as company boss.){kind=link}
Mineral Resources accelerates leadership succession plan
Mineral Resources (ASX: MIN) will accelerate its leadership succession plan with managing director Chris Ellison making the decision to step down as company boss.
The board at MisRes has handed Mr Ellison a board-imposed financial penalty of $8.8m, and loss of remuneration of up to $9.6m, reflecting the significance of corporate governance and reputational issues to the miner.
MinRes’ chair James McClements will also step down before next year’s annual general meeting.
The share market has reacted to the announcement with MisRes’ shares copping a 9% hit on Monday morning.
Speaking on the leadership transition and broader change to the company, Mr McClements says it is in the best interests of the shareholders and MinRes as a whole.
“In reaching our position, the Board has considered multiple factors, including the appropriate response to the identified governance issues and protecting long-term shareholder value,” he said.
“The Board faced a unique set of circumstances, with a high-performing, value-creating managing director, and an array of governance issues that, in aggregate, created an environment that required us to make changes.
“The Company’s rapid growth, particularly in the last five years, placed pressure on its governance systems and processes. While we have been working to improve those systems and processes, we recognise the need for accelerated change that reflects our status as a major ASX-listed company.
“We considered the best ways to achieve leadership succession and to make substantial advances in corporate governance, while also protecting value for shareholders.
“With the interests of shareholders absolutely front and centre, the Board has determined there needs to be an orderly leadership transition, significant strengthening of governance protocols, and a financial penalty imposed on Mr Ellison,” he said.
Mr Ellison is expected to remain in the role of managing director for the next 12 to 18 months while the leadership transition takes place.