Today, explosives and mining chemicals producer, Orica Ltd (ASX: ORI), announced the appointment of a new Chairman to replace current leader Russell Caplan.
In a media release to the ASX, Mr Caplan announced his retirement from the top role, effective 31 December 2015.
"After eight years on the Orica Board the time is right for me to leave the Board and for a change in Board leadership," Mr Caplan said. "A Board and management succession program is critical for any business, and one of the core roles of the Chairman. Orica has a new, world-class management team in place that is well placed to enable Orica to further build its market leadership."
Replacing Mr Caplan will be current BHP Billiton Limited (ASX: BHP) non-executive director and Asciano Ltd (ASX: AIO) chairman, Malcolm Broomhead.
"Malcolm is a highly experienced business leader with extensive experience in industrial and mining companies globally, including his leadership of Orica as its CEO from 2001 to 2005," Mr Caplan said. "He brings to the Board a deep understanding of both the mining and mining services sector, and exceptional leadership skills through every part of the resources cycle."
In August, Orica announced sweeping changes to the group's operating model in the face of challenging market conditions, and its share price subsequently tumbled. "The challenging market conditions make it critical that Orica has the right model to build closer relationships with customers, maintaining resilience and embedding its market leadership," Orica CEO, Alberto Calderon, said at the time.
Over the past five years, Orica shares have fallen 35%. However, analysts polled by Morningstar are forecasting a stabilisation of profits per share in coming years, as well as a dividend equivalent to 4.7% in the next 12 months.
