Upheaval At Vocus: Directors Ousted As Dump-CEO Bid Fails
Australian telecommunciations company Vocus was in upheaval yesterday with founder James Spenceley and fellow board member Tony Grist sent packing after failure of a move to remove chief executive Geoff Horth. Both resigned from the board – Spenceley at the specific request of other board members
Spenceley had led Vocus until the $3.75 billion merger with Horth’s M2 in February this year. This week he joined Grist in proposing the ousting of Horth the former M2 CEO but the plan struck strong resistance by the rest of the board.
“The resignations follow a difference of opinion between the departing directors and the board on the future leadership of the company” Vocus told the ASX yesterday.
“Mr Grist had confidentially proposed to the board an alternative leadership framework whereby the CEO would change in early 2017 and board leadership would be formally reviewed over the course of 2017.
“The remainder of the board did notree with the proposal put forward by Mr Grist supported by Mr Spenceley resulting in the company accepting the resignation of Mr Grist and requesting and accepting the resignation of Mr Spenceley.”
Added Vocus chairman David Spence: “The board is strongly of the view that Vocus is effectively governed and managed as evidenced by the strong operational and integration results being achieved se the merger with M2 and the proposal would needlessly destabilise the company.
“The board unanimously supports CEO Geoff Horth and his executive team and we believe they are best positioned to successfully integrate Vocus and its component parts implement the company’s broader strategy and pursue the multiple growth opportunities we have before us.”
Vocus shares closed – 16c or 2.84pc at $5.47. Earlier in the day they were – 4pc.