In a major coup, Boral has appointed former Adbri deputy chairman Zlatko Todorcevski as the company’s new chief executive officer and managing director, as it looks to rectify its position in the market.
Todorcevski will enter his new role on 1 July, 2020, which the company said would provide a “transition period” before current CEO and managing director Mike Kane retires in September.
In his time at Adbri (formerly known as Adelaide Brighton), Todorcevski operated on the company’s board from March 2017 and then transitioned to the role of deputy chairman and lead independent director from May 2019 – while serving as chairman in some instances.
Boral said Todorcevski will step down from Adbri’s board effective immediately, along with a movement out of the board of Coles Group Limited and The Star Entertainment Group.
According to Boral’s board chairman Kathryn Fagg, Todorcevski will bring an abundance of experience to the company.
“With exceptional commercial acumen, strategic insight and a focus on return on capital, Zlatko has a strong track record as a senior executive in a number of large industrial and energy companies,” Fagg said. “His experience in leading major transformations, including business turnarounds, as well as in capital allocation and strategic portfolio management, are critically important for Boral.
“Zlatko’s mandate as Boral’s CEO is at the outset to set a clear operational plan, including how to manage through the current challenging conditions, and to work with the board to finalise the review of the operational performance and strategic positioning of the businesses within Boral’s portfolio. He will then deliver a strategy to strengthen the financial performance of the company and to improve returns for our shareholders.”
Todorcevski said he believes Boral has the potential to be lifted out of its financial slump. “I see my job as helping to shape Boral’s future and ensuring that a company with such a proud 75-year history and heritage continues to thrive and prosper for many years into the future,” he said.
“This is a great, iconic Australian company, with an excellent brand, a committed and passionate workforce, strong market positions, and solid underlying business fundamentals. But it is fair to say that in recent times, the company has not performed in line with the market’s or the board’s expectations.
“Boral has the potential to perform at a higher level and to be recognised as a great business, which is what attracted me to the position in the first place. My brief is straightforward — to use my strategic and commercial expertise and knowledge of the sector to strengthen the business so that we are delivering attractive returns for our shareholders, doing a great job for our customers, and ensuring we run a safe and sustainable company for our people and the communities in which we operate.
“As the board made clear to me through the selection process, there are no sacred cows when it comes to our strategy and our portfolio. We will spend the next few months working on how to refocus Boral to deliver for our customers, our people and shareholders.”
Todorcevski will have a fixed annual remuneration of $1.9 million, which is comprised of his base cash salary, superannuation and allowance for a motor vehicle.
Adbri rings changes in wake of Boral appointment
Adbri chairman Raymond Barro thanked the departing Todorcevski for his contributions to the company’s board.
“The board remains committed to a majority independent board and intends to recruit an experienced independent non-executive director as quickly as possible,” he said.
“With a robust balance sheet and vertically integrated position across strategic locations, Adbri is ideally placed to participate in opportunities that will arise as the Australian economy recovers, particularly as government stimulus measures take effect.”
A number of changes to Adbri’s board have also been made to retain a majority of independent directors.
Adbri has now appointed Dr Vanessa Guthrie as lead independent director, tasked with overseeing the governance framework and conflict protocol introduced by the Adbri board in March.
Guthrie will head the nomination and governance committee, which will see Ken Scott-Mackenzie join as one of the committee members. Emma Stein has also been appointed chair of the Audit, Risk and Compliance Committee.