Weiss quits GPG

Long serving Guinness Peat Group executive director Gary Weiss has resigned while newish chairman Mark Johnson will also not seek re-election at the upcoming annual meeting to be held in Auckland.

The resignations follow GPG’s recent announcement that it would wind up its investment portfolio by selling assets, with the exception of thread maker Coats Group, and return capital to shareholders.

That decision came on the back of intense pressure from local investors and differed from an earlier GPG plan to spin off the Australian unit, which would be run by Dr Weiss.

Shareholders have grown increasingly unhappy with the performance of GPG in recent years, with its share price trading about 30% below net asset value. They were also frustrated by some of the investment decisions made in Australia in particular as well as lucrative compensation packages paid to directors. Dr Weiss was likely to have faced a hostile reception if he fronted at the annual meeting on June 8, to be held in New Zealand for the first time.

GPG said Dr Weiss would remain as chairman of wholly owned subsidiary Coats Group for an initial period of at least 12 months and provide consultancy services to GPG, if required.

Mr Johnson, who replaced founder Sir Ron Brierley as GPG chairman in September, said he would not seek re-election at the annual meeting in June.

GPG said the role of chairman would be different, given the company's new direction, “with an emphasis on asset realisation and an orderly wind down of activities".

“Mr Johnson feels that his other commitments and priorities are such that, with the company's strategic future determined, it is in GPG's interests for him to stand down and to allow a new chairman to guide the company in its new phase of development.”

GPG said a further announcement would be made in due course regarding the appointment of a new chairman.

Duncan Bridgeman
Thu, 31 Mar 2011

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Weiss quits GPG