Paykel steps down from F&P Appliances

It’s the end of an era at Fisher & Paykel Appliances with Gary Paykel announcing today he is stepping down as chairman of the company.

Mr Paykel confirmed today he would stand down as chairman, although he will continue as a company director, after joining the family business as an 18-year-old in 1960.

He announced earlier this year he intended to retire from the board before August 2012 but in a statement released to the NZX this afternoon, he said he had decided the time was right to vacate the chair.

Ralph Waters has been named as the new chair, despite also indicating in May he would retire before the end of this year due to additional board duties elsewhere.

Mr Waters said today he would not be chairman in the longer term but he would remain until a number of key decisions, including the CEO appointment and board refreshment were completed and the company was on a “more stable footing”.

In recent months Mr Paykel has overseen the introduction of a cornerstone shareholder, the renegotiation of banking arrangements and the completion of the company’s capital raising.

Mr Paykel’s decision to step down follows soon after chief executive John Bongard retired on medical grounds.

The company is still on the lookout for a new chief executive and Mr Paykel said this new change would allow that process to be completed with the maximum degree of independence.

Mr Waters said sorting out the leadership team would be the main goal in the short term but the other major challenge within its control was lifting production rates in the Thailand and Mexico factories.

Issues outside the company’s control include the anticipated recovery in the US market – which is still to be seen – as well as the early signs of rises in material prices.

Mr Paykel served at Fisher & Paykel Appliances for almost five decades, inclduign a stint as chief executive. He was made a Companion of the New Zealand Order of Merit in 2001 and was also director of Team New Zealand.

The company was co-founded by his father Maurice in the 1930s.

Mr Waters said Mr Paykel still has an important contribution to make as a non-executive director.

F&P Appliances is due to release its half-year results tomorrow.