High profile Elders' managing director, Mark Allison, is postponing his exit from the big agribusiness after agreeing to a pay rise to $1.5 million a year, plus ongoing incentives.
If he stays beyond June next year Mr Allison will pick up an additional cash bonus of $500,000, and another $500,000 if his tenure stretches beyond June 1 2025.
Elders' troubled share price has rallied slightly on the news the boss would be hanging around, lifting from a three-year low of $6.33 to more than $6.70 a share when trading began this week.
Just over 12 months ago Elders' share price was above $14.30.
The big farm services business began making plans to hire a new chief executive officer last November after posting a $163 million full year profit for 2021-22 and flagging Mr Allison proposed to leave in late 2023.
He has been managing director since 2014 when he made the unusual move from the chairman's role which he had held for the prior two years.
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The company's change of heart about a new appointment follows a tumultuous ride for Elders' share price in the past six months, with investors apparently spooked by the prospect of Mr Allison's departure and tougher seasonal conditions looming for the farm sector in 2023-24.
The share price swiftly sank 21 per cent to $10.44 when his resignation was announced, despite posting strong full year results.
Last month Elders' reported its half year statutory profit fell 47 per cent to $48.8m, impacted by softening livestock trading conditions, weaker crop input prices and 2022's wet weather disruptions in eastern Australia.
The latest results were a stark contrast to strong trading conditions a year earlier when it reported an interim profit of $91m.
Elders chairman, Ian Wilton, said the company was very fortunate to have secured Mr Allison's continued service.
"Mark's deep experience and understanding of Eldersa and agriculture both domestically and globally makes his continued experience ideal for Elders," he said.
Mr Wilton did not elaborate on how long the board of directors had been re-thinking its plans to find a new managing director.
He felt it was important to retain Mr Allison's experience and knowledge while the company continued a systems modernisation project and supply chain rationalisation.
However the Elders' current CEO succession program would continue to focus on the developing suitable candidates in house.
Mr Allison said he would work with the board to develop internal talent.
He was delighted to stay in his role.
"While I had been intending to retire from Elders, it was never my plan to cease serving the interests of Australian agriculture and this country's farmers following my departure," he said.
"I was very pleased to accept the board's invitation to continue in my role and I'm energised by the prospect of building on the hard work we have already done at Elders during my tenure."
News of his decision to stay coincided with Elders also announcing the immediate retirement of board director, Matthew Quinn.
Mr Quinn, a former boss at Australia's largest property group, Stockland, for 12 years, is also a current director of CSR Limited and chairman of TSA Management Holdings Limited has been on Elders' board since 2020.
Mr Allison took the helm at Elders after previous managing director, Malcolm Jackman, had spent almost all his time in the role selling off assets to save the company from collapse after it was crippled by big debts when the global financial crisis hit in 2009.
At the time, Elders was part of the Futuris Group and had accumulated a mass of non-agricultural business divisions ranging from automotive components to banking and crockery imports.
When Mr Jackman departed in 2013 Mr Allison temporarily filled in as executive chairman before switching to the managing director's job.
His previous roles in the farm and agribusiness sector have included running Elders' rival, Wesfarmers Landmark and Wesfarmers' fertiliser business, CSBP, in the early 2000s; heading up farm chemical supplier, Farmoz, for three years, and as the part time executive director at farmer body, GrainGrowers, for five years.
Mr Allison is also chairman of Agribusiness Australia.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
