Importance of Choosing Right Bosses and CEOs for Business

  • Dec 12, 2019 AEDT
  • Team Kalkine
Importance of Choosing Right Bosses and CEOs for Business

Last month, an English football club – Tottenham Hotspur FC was playing its second game following the appointment of new manager (coach) – Mr José Mourinho. The game was a UEFA Champions League match against Olympiacos FC, and 19 minutes into the game Tottenham was trailing behind by two goals.

It was only 29 minutes into the game, Mr Mourinho made a player substitution (which was a rare case as only 29 minutes were played). Later, Tottenham Hotspur won the game by a margin of 2 goals and scoring four in the process. This depicts the importance of management and quality decision-making that deliver results.

Management & Successful Companies

Management style and decision making play an important role in a build-up to a successful organisation. It is very favourable for companies to have a management team that could deliver efficient decisions and in turn, results.

Only two CEOs of Australian companies have made it to THE CEO 100, 2019 Edition of Harvard Business Review. Mr Gregory Goodman of Goodman Group (ASX: GMG) is ranked at 25th position and Mr Paul Perreault of CSL Limited (ASX: CSL) is ranked at 85th position on the list. There is no doubt that both the companies are doing reasonably well amid an economic slowdown coupled with uncertain business conditions.

Talent ManagementMany of the successful leaders emphasise on efficient talent management, and hiring, developing and retaining top talents continues to be a challenge for companies. Leaders are required to make crucial decisions, including talent planning, human resource management, performance management, staffing, compensation, and employee engagement. Delivering on these challenges is a task that many leaders try to undertake efficiently.

Customer ManagementA successful leader often places its customers’ interest before the company’s interest. Increasing technological developments are changing the ways how companies connect, engage and build relationships with customers.

Moreover, rapidly evolving customer taste and preference coupled with competition force any management to maintain sound relationships with its customers, while delivering on the expected value by customers.

Financial ManagementThe decisions related to the financial management of a company are very vital for its profitability, creditworthiness, shareholders and ultimately going concern of a business. Further, this also includes decisions related to the investment and capital allocation by the companies, which are crucial for growth.

GrainCorp Limited (ASX: GNC)

The company has reported that it appointed Robert Spurway to assume the role of Chief Executive Officer (CEO) and Managing Director after the demerger of Malt business, which is expected to be completed in early 2020.

Presently, Mr Spurway is the Chief Operating Officer of New Zealand’s largest company – Fonterra. He has been associated with the company for the last six years, responsible for global business operations, manufacturing and supply chain operations.

He brings in more than twenty-five years’ experience in the dairy and food industries, working at multiple senior roles with Goodman Fielder Australia, Fonterra, Salad Fresh and Mrs Crocket’s Kitchen.

It is expected that he would be joining the company after the shareholder and court approval for the demerger of Malt business from the company. GrainCorp has appointed Mr Spurway after an extensive local and international search process.

Reportedly, the total fixed remuneration (TFR) of Mr Spurway is $950k, which includes superannuation benefits. He is eligible to earn under the short-term incentive plan in the range of 0% to 150% of TFR. Subject to performance measures, he is also eligible for the target bonus of 100% of the TFR with respect to the completion of each Financial Year.

Further, the demerged business of the company/Malt business would be managed by the current CEO – Mark Palmquist. Also, this would be dependent on the approval of demerger by the shareholders and court, and he would be relocating to the North American headquarters of Malt in Vancouver, Washington.

The proposed demerger is anticipated to be implemented by way of a scheme of arrangement, and the company expects to release a scheme booklet in February 2020. Presently, it is likely that shareholder approval would be requested in March with implementation by late March or early April 2020.

Management Commentary

Graham Bradley AM, Chairman of GrainCorp, stated that the Board is pleased with this appointment after necessary approvals. Mr Spurway has demonstrated working in the food and dairy industries in operational as well as executive leadership roles.

Further, he has delivered quality results for customers and shareholders in relation to complex operational businesses and transformational change programmes. He is also very well acquainted with the agricultural markets of Australia and New Zealand, allowing the company to transform business strategy and customer offerings effectively.

Meanwhile, Mr Spurway stated that he is delighted to join the company in this capacity, and the company is an iconic business in the country with a rich history. He wants to play his part in strengthening the supply chain and delivering favourable outcomes for the company’s growers and customers.

FY 20 Outlook

In FY20, the company expects high application of malting plants and an extension of robust demand for malt and brewing ingredients from customers.

According to some forecasts, the winter crop for the year is anticipated to be below average in eastern Australia, and similar is expected from Western Australian and South Australian crops.

Further, it anticipates that the certain regions would face supply deficits in eastern Australia due to the drought, and low levels of grain carry-in are likely.

In FY 20, the company expects to supply grain trans-shipments from Western Australia, South Australia and Victoria to eastern Australia, which would help to meet the demand for grain.


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