The sad thing about leadership, and life in general, is that one bad decision can taint one’s reputation. And one can argue that Tiger Brands foray into Nigeria may have been what lead CEO Peter Matlare to the door. Matlare headed the group for seven years and led a ‘market darling’ until the acquisition of Nigerian group Dangote Flour Mills two years ago. The group reported a write down of R954 million in the last financials on the acquisition. But problems weren’t limited to Nigeria as the group’s Kenyan executives were also found to have manipulated profits in order to get bonuses. They also say the market never lies, with the share price hitting a four-month high following the news of Matlare’s departure. He will step down at the end of the year as the search for a successor begins, giving the group a few months to find someone to take over the reigns of a challenging situation north of the border. – Stuart Lowman
Tiger Brands media release
The Chairman and Board of Tiger Brands Limited announced today that the Group’s CEO, Peter Matlare, has reached agreement with them regarding his decision to step down as CEO. Mr. Matlare will remain in his position as CEO until 31 December 2015.
“The Board recognises and appreciates the contribution made by Mr Matlare as Chief Executive Officer over the past seven years and we are grateful to him for his focused leadership in steering the company to date” said, André Parker, Chairman of the Tiger Brands Board.
Read also: Tiger Brands’ Peter Matlare answers the hard questions about Dangote, results
Peter Matlare said, “I have given this careful consideration and believe that this is the right time for new leadership at Tiger Brands. I am proud of the progress we have made since my appointment. Our business model is more resilient, we are more disciplined on cost management, and we have introduced key strategies that will improve our positon locally and on the rest of the continent. While the external environment has continued to be, and will remain, challenging, the Group has the resilience to overcome these challenges. In addition we have defined our culture through a common set of values for the Group and the progress we have made, has been achieved by applying these values and by focusing on the needs of all our stakeholders. I wish to thank the leadership team as well as the employees of Tiger Brands for their commitment and support over the years.”
“I value the guidance and support received from the Board during my tenure.”
The Board has embarked on a process to find a new CEO.
