CBH chair backs CEO Crane
CBH chairman Wally Newman claims his board is united behind senior management despite the infighting which led to the resignation of a respected independent director.
Mr Newman moved to clear the air about the future of chief executive Andy Crane yesterday, saying he had the full support of the board.
He also defended the directors in the face of damaging allegations about their conduct in presiding over Australia's biggest farming co-operative.
It was confirmed that one director circulated an email referring to Dr Crane which included the term "vote of no confidence".
Mr Newman said the terminology used in the email was off the cuff and there was never any intent to move a vote of no confidence at today's board meeting.
"I have put it to the whole board and they are totally behind not only Andy but all of the management," he said.
Mr Newman said he had spoken to directors about their behaviour in the wake of revelations about a power struggle on the divided board.
Samantha Tough, the second woman director in CBH's 81-year history, was caught in the crossfire and resigned this week after just nine months on the board.
CBH is expected to put in place plans to replace Ms Tough with another independent director as soon as possible to bring the number of board members back to 12.
Mr Newman denied the events that led to her resignation would damage the co-operative's ability to attract quality independent directors to support the nine grower-elected board members.
He supported having the maximum of three independent directors and said several highly qualified women had expressed an interest in replacing Ms Tough.
Asked about the conduct of the board, Mr Newman said discussions were often robust but nothing to what he had witnessed in 25 years in local government.
"I can tell you it is tame here in comparison," he said. "They are almost gentlemen, but not quite."
Mr Newman said CBH's track record and position as one of Australia's leading private entities with revenue of about $2.9 billion last year showed the robust board debate worked to the benefit of its 4300 grower members in WA.
It is understood a majority of the grower directors threatened not to endorse Ms Tough before a member vote on her appointment at the general meeting on February 23.
Mr Newman, who took the reins as chairman in August, said Ms Tough chose to resign and would have had his support if she continued on the board.
He rejected claims her departure tilted the balance of power on the board in favour of a grower bloc unhappy with Dr Crane.
"You wouldn't get a better CEO than Andy. He is outstanding and that is the light that he is seen in by all board members," he said.
