Dec 2010 Financial News

GK confirms Wehby's succession - Erwin Burton to retire

Dec 15, 2010

The path to Don Wehby's ascendancy to the top of the GraceKennedy group was clearer Tuesday after the company announced that he will assume the CEO's title next July, while the current boss, Douglas Orane, will be named executive chairman.

Orane, 63, currently holds the dual post of chairman and chief executive officer, and yesterday's announcement - among a slew of corporate repositionings - comes ahead of his retirement in two years' time.

GraceKennedy has a policy of mandatory retirement at age 65.

"At some time in 2012, once the transition has gone smoothly, I will retire at that time," Orane told Wednesday Business last night. "I will be 65 on December 8, 2012."

Among the other moves confirmed by GraceKennedy is the planned retirement on February 28 of Erwin Burton as CEO of GK Foods, to be succeeded by Michael Ranglin, who was being groomed for that position.

Ranglin, who will join the GraceKennedy board, is currently CEO of the subsidiary, Grace Foods UK Limited.

Burton, who is stepping down as director, will, however, stay on for a year as a contract advisor to help with the transition.

Last night Orane characterised the planned elevation of Wehby, 46, as well as the other moves, as part of a "robust succession policy that we have developed in GraceKennedy.

"I am very excited about this," he said. "In the fast-moving 21st century it is important to get the younger generation into top leadership earlier."

Wehby, an accountant, was clearly earmarked for the top job at GraceKennedy since he joined the group 15 years ago from Red Stripe as a senior finance official, working under his father-in-law, then chief financial officer, Peter Moss-Solomon.

Since then he held other top positions, including chief financial officer, CEO GK Investments and group chief operating officer, a post he assumed when he returned to the company last year after a two-year secondment to the Golding administration and a minister in the ministry of finance.

Honoured and humbled

"I am honoured and humbled to be selected to be the next group CEO of GraceKennedy," Wehby said in a statement issued by the company yesterday. "It shows that with hard work and dedication anyone can work their way to the top."

He added: "I am looking forward to the challenges and would like to thank the chairman and board of directors for their confidence."

Wehby becomes CEO perhaps a year younger than when Orane was given that job in 1995; although Orane, at age 39, was in 1986 named co-managing director with his predecessor, Rafael Diaz.

That, however, was under a different corporate structure.

Orane combined the chairman-ship with the CEO's job in 1998, but it was unclear whether Wehby will follow suit when Orane steps down given a corporate governance structure that is increasingly shifting towards fewer executives on the board and more outside directors.

For instance, in yesterday's announcement, the board said that Joseph Taffe, the deputy CEO of the GraceKennedy Financial Group, will step down as one of six current executive directors on the 14-member board.

Taffe will not be replaced, meaning that there will now be five executive directors or 36 per cent of the board's membership.

"In keeping with corporate governance best practices, it has been agreed that the number of executive directors will be reduced to five," the company statement said.


Source:
business@gleanerjm.com
Jamaica Gleaner
Wednesday December 15, 2010

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