Brickworks Limited (ASX: BKW) shares are edging higher on Tuesday.
In afternoon trade, ASX 200 stock is up 0.25% to $28.55.
This is despite there being some big news out of the building products company which you might have expected to drag its shares lower.
What did the ASX 200 stock announce?
This morning, Brickworks announced the retirement of its long-standing managing director, Lindsay Partridge.
According to the release, Partridge will retire on 31 July 2024 after 39 years with the company and 25 years as its leader.
The company notes that during this time, the outgoing CEO has successfully grown Brickworks from a small brick manufacturing operation with an asset base of $500 million to a large multinational organisation with an asset base of $6 billion.
Commenting on the exit, Brickworks' chair, Robert Millner, said:
On behalf of the Board and the Brickworks team, I would like to thank Lindsay for his outstanding dedication and leadership and the remarkable contribution he has made in growing and reshaping the Brickworks Group from a small brick making company to an ASX 150 listed company comprising successful international building products and large-scale industrial property JV businesses.
What's next?
The ASX 200 stock has been quick to announce a replacement, having prepared in advance for this eventuality.
The release reveals that following a comprehensive internal succession planning process, it has appointed Mark Ellenor as Partridge's successor in the role of CEO. Partridge will assist with Ellenor's transition to his new role until his retirement.
Mark Ellenor is the current Brickworks chief operating officer and has been with the company for 25 years.
Millner believes that Ellenor will be a great CEO for the company. He adds:
Mark is well suited to lead Brickworks through the next chapter of growth and performance. Mark brings to the role a deep understanding of brick, rooftile and masonry manufacturing, supply and distribution in Australia and North America. He has delivered on multiple plant rationalisations and capital expenditure programs and the positioning of brick as a style choice to architects through the design studio footprint.
Usually when a long-serving CEO leaves a company its share price will crumble due to the uncertainty. However, with this ASX 200 stock edging higher today, it appears that the market believes Ellenor's appointment will mean business as usual for the company.
Following today's gain, Brickworks shares are now up 24% over the past 12 months.
