Race is on to replace Hugh Marks as Nine Entertainment CEO
The surprise resignation of Nine boss Hugh Marks at the weekend has quickly moved on to speculation about his replacement and which firms could be tapped to assist chair Peter Costello decide.
Monday’s official market announcement spared any reference to Marks’ admission of a relationship with former strategy exec Alexi Baker, noting only that the timing was “opportune to announce my retirement whilst giving the board plenty of time to appoint a successor”.
Similar sentiments, we note, to those mentioned to this column about Baker’s exit back in October … something about “new challenges”. In hindsight that seems like quite the understatement.
While digital boss Chris Janz, said to have close links to deputy chair Nick Falloon, and Stan head Mike Sneesby have emerged as internal front-runners, Nine says it is evaluating externally too, with potential for any number of Costello’s previously tapped recruiters to be drafted in.
Costello is close to management consultant Egon Zehnder, the UK-headquartered firm whose Melbourne office is headed by Fiona McGauchie – daughter of GrainCorp director Donald McGauchie, who also served on the RBA board, appointed by the then-treasurer Costello in 2006.
Earlier this year, Costello’s Future Fund tapped the firm to hire its new chief executive after David Neal called it quits, shelling out $331,000 to confirm Raphael Arndt as the best candidate and elevate him from his former post as chief investment officer.
But Egon Zehnder is familiar with the broadcaster too, helping to select Eddie McGuire for the top job back in 2006, and continuing links with Eddie Everywhere through to 2017.
The firm’s media appointments haven’t all been successful, however — Michelle Guthrie’s ill-fated recruitment to the national broadcaster is also among its prior notable appointments.
Elsewhere though, Costello has previously tapped Spencer Stuart, including for the appointment of Greg Barnes’ CFO replacement in Paul Koppelman, though he now too has been succeeded by former Velocity exec Maria Phillips who joined the group in July.
Tender documents show Spencer Stuart was tapped for two other Future Fund appointments in the past two years — notably through their London and Singaporean offices.
If the bookies are anything to go by however, Janz is the firm favourite, with $1.85 odds to take the top job according to Sportsbet.
Elsewhere in the field, former Fairfax head Greg Hywood is an outside chance at $15, pipped only just by former Nine boss David Gyngell at $12 — perhaps third time lucky for him at Nine, though any move from the laidback Byron with wife Leila McKinnon to the new North Sydney HQ would be a stretch, no matter how flashy the refit is.
Universal delay
While the local sharemarket’s day-long glitch may have cut short any local bull run, spare a thought for would-be market debutant Universal Store and retail heavy hitter Brett Blundy.
The youth-focused apparel retailer was set to join the bourse at midday on Monday, providing a hefty payday for Blundy as he sells his 38 per cent stake down to a more moderate 16 per cent.
At its IPO price of $3.80, that equates to roughly $50m, but any champagne showers were promptly put on hold on Monday as the bourse investigated an outage reportedly linked to system upgrades.
Blundy through his BB Retail Capital remains the largest shareholder in the chain, ahead of long-time partner Ray Itaoui and his Mountainview Trust with a stake of 6.1 per cent — roughly equivalent to $17.1m at its IPO price.
Itaoui is still a director of the Blundy-founded landlord Aventus even as the rich lister himself stepped down from the board earlier this year.
Trent Peterson’s Catalyst Direct Capital Management and Srdjan Dangubic’s Five V Capital would also have been privy to the celebrations as part of the Blundy-led private equity consortium that bought the chain from brothers Greg and Michael Josephson for $100m back in 2018.
Director and former long-serving Adairs chief David MacLean, also a director at Blundy’s recently debuted Dusk Group, will be hoping shares in the latest IPO don’t follow the candle maker south — still yet to trade above its $2 a pop IPO price since its debut two weeks ago. Metcash and GWA director Peter Birtles adds to his non-executive resume as chairman of Universal, no doubt bringing his retail nous after his 13 years in the top job at Super Retail group, while Alice Barbery heads the executive team.
ATC pitch night
Six candidates vying for a spot on the prestigious Australian Turf Club board made their first pleas to the club’s voters on Monday night, setting the scene for a tight race come the AGM later this month.
In what has become quite the democratic affair, candidates are permitted to make a five-minute speech at both Rosehill and Randwick, setting out their qualifications for the two coveted spots — this year vacated by Westpac chief economist Bill Evans, as well as PR queen Angela Belle McSweeney — though the third generation of the prominent McSweeney racing family is up for a second term.
Silk Tim Hale had top billings at the Randwick forum, spruiking his years of experience in law and property development, as well as regular attendance at racing events with wife Catherine, while accountant Heath Stewart pledged to promote greater transparency and encourage younger members.
Solicitor David Walter pitched a focus on the future and financial performance, while Robin Reich set out plans for free membership in the event of any future lockdowns, as well as better catering services.
Rounding out the list, company director Paul Bagnall kept things concise — pledging international racing relationships and a bid to increase membership. It’s not his first time throwing his hat in the ring — losing out to incumbents Phil Morley and Julia Ritchie back in 2018.
NAB feels the heat
NAB has recommended shareholders vote against climate change-linked resolutions put forward for consideration at its AGM next month, stressing it was already achieving many of its commitments to the cause.
In a notice of meeting ahead of its virtual December 18 meeting, chair Phil Chronican set out his and the board’s commitment to climate change and governance, but stopped short of backing the two proposals lobbed by activist group Market Forces.
When it came to its board however, all candidates, including the most recent addition Simon McKeon were endorsed, while a proposal to grant $3.25m in performance rights to chief Ross McEwan also got the board backing.
Race is on for Nine’s plum role
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