The board sets direction and targets. On behalf of shareholders it must ensure that those settings are achieved by management. That’s the theory.
The reality is that too many, if not most, boards let management do their own thing and lack the courage to govern management. (For a good example see Qantas.)
Clearly, PNV’s board doesn’t lack the courage to govern. I give them a big tick for that and would not want it otherwise. I want the board to act as soon as it is clear that management is not following the script. Rip the bandage off and move on.
They have had success with a previous appointment of an acting CEO from the board. There’s every reason to think that Robyn Elliot will also be a success — as her immediate past experience with CSL testifies.
This company through the very sticky appeal of its product to clinicians is far more than any one exec.
The board knows this, as does Swami.
PNV Price at posting:
$1.27 Sentiment: Buy Disclosure: Held
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