Gibbs sacked
June 29th, 2010 at 1:14 pm by David FarrarStuff reports:
Shares of Guinness Peat Group sank today after the investment company sacked long-serving New Zealand executive director Tony Gibbs after a board rift over strategy culminated in his unauthorized public statement criticizing a demerger plan.
In early trading the shares were down down 7.4 percent to 63c, after chairman Ron Brierley announced Gibbs had been dumped for a “serious breach of boardroom protocol.”
The decision was made “with much sadness but was unavoidable,” Brierley said in a statement which signaled the end of a personal association with Gibbs that goes back more than 20 years.
Gibbs said he was “fired for telling the truth” in his statement objecting to the investment company’s plan to spin off its Australian assets. GPG announced the proposal on June 16, giving its long-suffering shareholders some idea how it planned to return value to investors, an idea it first mooted before the global financial crisis. His stance may have provoked some action, though, as Brierley also announced that three independent directors would be appointed with a key role in reviewing strategy.
I am surprised that an experienced company director such as Tony Gibbs would fail teh most basic tenet of governance.
A Director can never criticise in public decisions made by the Board. Even if you voted against them, you are expected to represent the Board’s collective view in public.
If you are unable to do that, then the proper response is to resign from the board.
What you can not do, is attack the Board’s decision and think you can remain a director. A company board is not like an incorporated society when directors can disagree in public.
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June 29th, 2010 at 1:33 pm
Arrgghh. GPG’s share price cannot go any lower, so the option could be to get rid of Coats to try to turn the company around.
Brierley should pass the mantle to someone with more energy and vision. He’s yesterday’s man, and as an investor I want better performance.
Vote:June 29th, 2010 at 1:52 pm
You piss people off enough they’ll do almost anything.
Vote:June 29th, 2010 at 2:47 pm
This wouldn’t be the same Tony Gibbs who shafted the Apple Industry through the takeover of ENZA or the same Tony Gibbs who wants to shaft the Kiwifruit Industry by trying to create the downfall of Zespri by any chance, would it? Nah, couldn’t be cause that Tony Gibbs was only interested in his collective Bank Account and not the best interest of the country. Tosser.
Vote:June 29th, 2010 at 3:25 pm
An Incorporated Society can remove an executive committee member (at least from the executive role) in the same way a company can remove an executive director (again at least from the executive role). The difference is that a company in general meeting can generally oust a director on the votes being proportional to shares held whereas for an incorporated society it is one member one vote.
Vote:June 29th, 2010 at 4:40 pm
“GPG’s share price cannot go any lower”
Actually they can go 63 cents lower
Vote:June 29th, 2010 at 8:18 pm
Anybody seen that almost endless list of directors’ stock options in GPG.
Vote:That list has the directors making Chris Carter et al look like raw untrained amateurs when it comes to sucking on the tit. That’s why I sold GPG at $1.60.
But I could get out of GPG. I can’t get out of New Zealand.
June 29th, 2010 at 8:21 pm
“But I could get out of GPG. I can’t get out of New Zealand.”
As long as you have never got into Chris you should be OK Tauhei. If not have a test in a month or two.
Vote:June 29th, 2010 at 8:54 pm
Tony Gibbs must have known that his action would result in his dismissal as an Executive Director. So why did he do it? Turkeys usually don’t vote for an early Christmas. His annual remuneration package alone would be reason enough to stay on board the ship.
I just wonder if there is another reason behind all this. Is it that the empty promises of returned value to the s/holders are an embarrassment? Is Coats just too big a problem to deal with? Is it that the spin-off of GPG Australia is a non-value adding exercise (like the annual 1:10 bonus). Are there other reasons? Oh to have been a fly on the wall of recent GPG board meetings.
Vote:June 29th, 2010 at 9:36 pm
“I just wonder if there is another reason behind all this.”
Australia looks toward Asia these days and if a coy looks toward NZ it sees no growth by comparison?
Possibli we should observe and learn but that would mean getting off our arses so that’s probably not going to happen.
Vote:June 29th, 2010 at 10:28 pm
Tony Gibbs was acting on principle a rare move.
all plaudits to him.
The little people should cheer.
Vote:Pity he is the exception.
June 30th, 2010 at 10:15 pm
Gibbs said he knew he was signing his resignation as soon as he commented in public…
Vote: