Malcolm Deane promoted to ALS Global’s CEO, with $5m pay packet

The $6.2bn testing and certification company has promoted its chief strategy officer to become its next CEO and spearhead its five-year plan.

ASX-listed testing and certification company ALS Global has tapped an internal candidate to be its next chief executive after former boss Raj Naran’s abrupt resignation in March.

The company’s global chief strategy officer Malcolm Deane has been promoted to the chief executive role, beating external candidates after a global search. He will receive a pay package worth almost $5m a year, eclipsing Mr Naran’s pay packet.

Brisbane-based ALS specialises in sampling, preparation and analysis of coal and coal-products such as anthracite and coke. Mr Deane’s appointment comes three years after it was embroiled in a scandal involving staff issuing fake coal analysis certificates.

Chairman Bruce Phillips said Mr Deane would be elevated to the position effective immediately.

“The board’s approach of continuous CEO succession planning over the last few years, involving the consideration of both internal and external candidates, has facilitated a smooth leadership transition,” Mr Phillips said.

“Malcolm’s experience includes leadership positions in operations, commercial, and strategic roles in diverse business and cultural situations. Most recently, he was … responsible for corporate strategy, business development and acquisitions, providing a strong foundation to lead the delivery of ALS’s latest 5-year strategy and its related operational plans.”

Mr Deane will be paid $US910,600 ($1.42m) a year, and can potentially double that if he beats the company’s short-term targets. He can also receive up to 150 per cent of fixed remuneration under ASL’s long-term incentive plan.

In addition, the company will pay him a school allowance of $US140,000 a year to cover “family education costs” following his relocation to the US from Argentina. He will be based in Houston, Texas and “travel to Australia as required to perform his duties”.

All up, this equates to a pay packet worth up to $4.9m. His predecessor Mr Naran received $2.72m last financial year, including $533,413 in bonuses.

ALS shares fell 1.9 per cent to $12.64 on Monday, valuing the company at $6.1bn. This compared with a 0.8 per cent gain across the broader sharemarket.

ALS’s former CEO Raj Naran and chairman Bruce Phillips. Picture: Annette Dew

In early 2020, ALS fired its coal services general manager and three other staff after it found 45-50 per cent of its coal analysis certificates were altered in the company’s laboratories in Newcastle, Mackay, Gladstone and Emerald.

In May 2020, it stood down more than 2300 workers as it battled the onset of the pandemic and reeled from the coal-tainting scandal.

The company has since been executing a growth agenda, involving the sale of its asset-care division to SRG Global, for $80m in March.

“The proceeds have been incorporated into the company’s capital management framework, underpinning the strong balance sheet and reallocating capital to higher growth end market opportunities,” ALS said at the time, while upgrading its full-year profit guidance to $312-$322m from $300-$320m.

“The balance sheet is well positioned and following receipt of the proceeds of sale from the asset-care business divestment the company’s current leverage ratio is ~1.8x and has approximately $400m of available liquidity (as of March 1).”

On Monday, Mr Deane said ALS “continues its journey to becoming a global industry leader”.

“This company has incredibly talented and passionate people who embrace a culture of innovation and collaboration, which at its heart will ensure we continue to deliver meaningful value for our clients.”

“My focus is to ensure we continue delivering against our strategic FY2027 vision. ALS is well-positioned to pursue its strong growth agenda, and we will continue to make the necessary investments to further improve the quality and diversity of our portfolio.

“I look forward to sharing our vision in more detail at the release of the FY23 financial results on May 29.”