Mirvac chair MacKenzie upstages earnings by flagging exit
Mr MacKenzie had held the job since 2005. There was no immediate replacement for the job. Mr MacKenzie said in a letter to security holders that he felt it was "the right time to hand over the mantle" to someone new.
"I will step down as chair at this year's annual general meetings in November and the board is considering its succession plan and the identification of a new chairman," he said. But analysts said the board started looking for a new chief at least six months before the departure of Nick Collishaw and appointment of Susan Lloyd-Hurwitz last year. The board shake-up comes 24 hours before Mirvac releases its full-year earnings results.
The group held an investor strategy update in mid May, where Ms Lloyd-Hurwitz reaffirmed the earnings guidance for the full year in the narrow range of 10.7¢ to 10.8¢ to June 30, 2013. Broker estimates are for a net profit after tax of $366.2 million, with a distribution of 4.3¢. That would be unchanged on the 2012 result.
After the May briefing, John Kim, of CLSA, said he found Mirvac's strategic review to be high in substance but low in "wow" factor.
Frequently Asked Questions about this Article…
Mirvac Group announced the sudden resignation of chairman James MacKenzie. He has held the role since 2005 and said in a letter to security holders that he felt it was "the right time to hand over the mantle." There was no immediate replacement named.
Mr MacKenzie said he will step down as chair at this year’s annual general meetings in November, and the board is considering its succession plan and the identification of a new chairman.
No immediate replacement has been announced. The Mirvac board said it is considering its succession plan and identifying a new chairman ahead of the November AGM.
The board shake‑up was announced 24 hours before Mirvac was due to release its full‑year earnings. Earlier, at a mid‑May investor strategy update, CEO Susan Lloyd‑Hurwitz had reaffirmed earnings guidance for the full year, so investors should watch the formal results release for any further impact.
Mirvac had reaffirmed full‑year earnings guidance in a narrow range of 10.7¢ to 10.8¢ to June 30, 2013. Broker estimates cited net profit after tax of $366.2 million and a distribution of 4.3¢, which would be unchanged on the 2012 result.
Yes. Analysts noted the board had started looking for a new chief at least six months before the departure of Nick Collishaw and the appointment of Susan Lloyd‑Hurwitz last year, indicating broader recent leadership activity at Mirvac.
Analysts pointed out the board was already searching for new leadership prior to some recent changes. After the May briefing, John Kim of CLSA described Mirvac’s strategic review as high in substance but low in a "wow" factor.
Everyday investors should watch Mirvac’s imminent full‑year earnings release (which followed the chairman announcement), any updates on the board’s succession plan and the identification of a new chairman, and comments from management at the November AGM. The mid‑May investor strategy update and the reaffirmed earnings guidance are also relevant context.
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