Goodman drops chief exec, post

Press, 1 August 1989, Page 37

Goodman drops chief exec, post

Mr Pat Goodman, chairman and chief executive of Goodman Fielder Wattie, will relinquish his chief-executive role as soon as possible, the company has announced.

A chief executive officer would be appointed as soon as practicable the company announced yesterday in outlining changes to the board. The number of directors will increase to 12 to 14, of whom at least half will be Australian residents, the company says. This is to reflect that half the company's shares and assets are held in Australia.

Mr Goodman, as chairman, announced the first of the board changes yesterday, with the appointment of two new directors: Mr D. J. Hughes, former chief executive of Cadbury Schweppes Australia; and Mr R. A. Robson, a former managing director of the Australian Guarantee Corporation.

Mr Goodman has been chairman of Goodman, Fielder, Wattie since the group was formed by amalgamation, and he became chief executive when the managing director, Mr Duncan McDonald, resigned “to pursue other interests” in early June. This was after the take-over struggle with Ranks Hovis McDougall and at the beginning of the GFW plan to take over the Brierley Australian arm. Industrial Equity, and strip it of assets. The plan was blocked by the majority shareholders in GFW.

Goodman Fielder Wattie says it has reviewed the events of the last few months, will “clarify” the strategic direction of the company, the group board, and corporate management. Decisions will be announced over the next six months.

It says these will be aimed at: Ensuring the company’s strategy is clearly understood; further consolidating and strengthening the company’s major businesses; and providing board and management structures “appropriate to a growing International food company.” The board says it believes it is important to re-emphasise that the company’s central strategy is to develop its major food businesses which comprise a wide range of consumer and food service products; flour milling and related activities Including bread and baked goods; and specialised food ingredients, including gelatine, stabilisers, and starches.

The company says the 1989 balance sheet will reflect gearing of about 40 per cent. “This level of gearing is considered appropriate for the long term. The prospective sale of the lEL shares is expected to generate $374M, thereby providing the capacity for modest acquisition activity without unduly increasing gearing.”