Scrimshaw to retire as FMG executive

Fortescue Metals Group executive director Russell Scrimshaw has announced he will relinquish his executive duties in June, adding to the overhaul of the company's senior management ranks over the past year.

Mr Scrimshaw will remain as a non executive director and will provide ongoing advisory services to FMG. Mr Scrimshaw had served as executive director since July 2005.

Mr Scrimshaw's retirement follows a similar move by another key player in FMG's early years. Former executive director Graeme Rowley retired from his executive duties in March 2010, after serving on FMG's board since 2003.

Their retirements have been covered by th rcruitment of three senior executives, and come amidst speculation around the future of Andrew Forrest as managing director.

Mr Forrest's tenure has been under a cloud since he was found by Perth's Federal Court in February to have misled and deceived investors over agreements with Chinese companies relating to the development of a mine and port in the Pilbara.

In January, FMG announced the appointment of Thiess's Australia chief executive Neville Power as chief operating officer.

Worley Parsons co-founder Peter Meurs joined FMG in April last year, to become director of developments.

And in January last year, FMG appointed former Southern Cross Electrical Engineering managing director Stephen Pearce as chief financial officer.

There is speculation surrounding Messrs Pearce, Power and Meurs that they would be worthy successors to Mr Forrest.

At close of trade today FMG shares had dropped 15 per cent to trade at $6.50.