Publications
Partners
Cape Town - Ketso Gordhan, who resigned as CEO of Pretoria Portland Cement (PPC) [JSE:PPC], will return if shareholders agree.
On Monday he spoke out about his sudden exit from the cement giant.
Despite the board issuing a statement, which Gordhan had agreed to, saying that he left because of differences of opinion with the board relating to decision making procedures, speculation was rife that he left for other reasons.
These included differences on his African expansion strategy, or the wage freeze he enacted for senior staff, reported City Press and his purchase of just under R10m shares in the company, according to a report by Business Day.
Gordhan said in a statement that since the resignation announcement, he has heard from several PPC shareholders, including employees.
"I now believe it is in the interest of PPC’s stakeholders that I provide clarity about the reasons for my resignation."
He said that he and the board disagreed about the delegation of authority and the limits of his decision making on personnel matters.
As reported by City Press, Gordhan said the board opposed his "desire to exit a senior executive from the business". He said he believed this executive was putting the strategy of the company at risk.
"As CEO, I was entirely authorised to make this decision, once I had informed the board, and the ensuing interference by the board led to my loss of confidence in their ability to manage the business in a manner that is consistent with shareholder interests."
Gordhan said that since he is no longer an executive of PPC, only the board can divulge more details about these matters.
However, as a significant individual shareholder he shared the following:
• The board inappropriately involved itself in operational and personnel matters and the manner of its intervention raised a concern about whether I had appropriate support from the board to continue as CEO.
• Creating a values driven organisation is key to PPC’s success and the board’s actions impacted my ability to run the company and to execute properly on our strategy for the benefit of all stakeholders, including employees who are a significant shareholder.
• The board’s actions put PPC’s strategy execution, including potential shareholder value, at risk.
He said PPC has reached a stage in its strategy execution where complete alignment at the top is a necessary condition of success.
"While there is a very strong operational team in place, PPC still faces a number of strategic execution and internal alignment challenges that I believe I am well positioned to overcome as CEO."
Speaking about his time at PPC, Gordhan pointed out that although the company has seen remarkable achievements in a relatively short period of time, much more still needs to be accomplished.
"I have thrown myself into this business and believe I have created a vision that can take PPC to the next level and build it into a truly African business.
"I remain passionate about PPC, about the strategy we have put in place and about the excitement, loyalty and commitment we have created.
"I remain a material shareholder and would go back as CEO in a heartbeat if the shareholders agree with me that this is in the best interest of the business," Gordhan concluded.
PPC’s share price dropped by 8% since Gordhan's exit. On Monday, the company's shares closed up 0.43% at R30.03.
- Fin24
