THE tenure of chief executives in Western Australia is likely to get a lot shorter if recent trends keep up, with a flurry of local firms making changes at the top.
THE tenure of chief executives in Western Australia is likely to get a lot shorter if recent trends keep up, with a flurry of local firms making changes at the top.
In the past week, engineering and contracting company VDM Group and uranium explorer WildHorse Energy have joined the list of major WA businesses that have already changed, or are in the process of making executive and board changes.
The changes mostly fall into two categories: cash-generating businesses that have battled to deliver good results in the current tough market, and explorers that have battened down the hatches in order to preserve their cash reserves.
WildHorse Energy, which attracted enthusiastic investor support when it was established in 2006, fits the latter category.
Its chairman Mark Hughes resigned last week after the company decided to reduce the size of its board. Director Craig Burton has stepped up as non-executive chairman.
This followed several other changes that illustrate the pressure on many exploration stocks: managing director Richard Pearce's role has become part-time, executive and board remuneration has been cut, and work programs at its projects have been scaled back.
Golden West Resources is another explorer that has been forced to cut costs in light of tougher market conditions, which make it difficult for explorers to raise fresh capital.
It announced earlier this year the departure of chief executive David Rose, just eight months after recruiting the former Rio Tinto executive.
VDM Group announced this week the departure of managing director John Farrell, after the board decided his contract would not be extended beyond June 30.
Mr Farrell was the architect of VDM's growth strategy, based on bringing together several previously independent consulting, engineering and construction firms.
As an interim step, the chief executive responsibilities will be shared by four divisional chief operating officers and a board committee to be led by executive director Jim Van Der Meer.
Nomad Building Solutions was another group that had a strategy of growth by acquisition. Its managing director Phil Guy resigned in January and since then the role has been filled on an acting basis by Alan Thomas, who previously ran Nomad subsidiary Rapley Wilkinson.
Iron ore miner Territory Resources, meat processor Harvey Beef, and Rugby WA are other groups to recently experience change at the top.
Territory last week promoted chief operating officer Andy Haslam to the role of managing director.
Rugby WA announced that former Perth Wildcats executive Vern Reid will be its new chief executive, following the resignation of Greg Harris after a 12-month stint.
