The Elders Ltd (ASX: ELD) share price has started the week strongly.
In morning trade, the ASX All Ords agribusiness share is hurtling over 5% higher to $6.72.
Why is the ASX All Ords share racing higher?
Investors have been buying Elders' shares after the company provided an update on its search for a new CEO. This followed the announcement of the planned retirement of current managing director and CEO, Mark Allison, in November.
According to the release, after a comprehensive domestic and international search, the Elders board has persuaded Mark Allison to make a U-turn and to continue in the role for the foreseeable future.
The release reveals that Allison will have his salary increased to $1.5 million per annum from the $1.1 million paid in FY 2022. The CEO will also be eligible for an additional retention bonus of $1 million if he remains with the company until 1 June 2025.
Elders' Chair, Ian Wilton, said,
We are very fortunate that we have been able to agree with Mark that he will now not retire from Elders and secure his continued service. This is an ideal outcome for Elders, its customers, employees and shareholders. Mark's deep experience and understanding of Elders and agriculture both domestically and globally makes his continued service ideal for Elders.
Wilton highlights the importance of retaining Mr Allison's experience and knowledge as the company continues its systems modernisation and supply chain rationalisation projects. Elders will continue with its CEO succession program and focus on the development of suitable candidates.
Allison was pleased to continue in the role. He adds:
I am delighted to continue in my role as Managing Director and CEO of Elders. While I had been intending to retire from Elders, it was never my intention to cease serving the interests of Australian agriculture, and this country's farmers, after my departure. As a result, I was very pleased to accept the Board's invitation to continue in my role and am energised by the prospect of building on the hard work we have already done at Elders during my tenure.
Interestingly, the company also separately announced the resignation of Matthew Quinn as non-executive director with effect from 4 June 2023. The company has not revealed the reason behind this resignation or if it relates to today's news.
Nevertheless, shareholders will no doubt be pleased to see this ASX All Ords share jump today following a tough period. Even after today's gain, it has lost a third of its value in 2023.
