Swami did an excellent job of restructuring and expanding the company’s management team to better suit this rapidly growing business. This legacy, along with an improved workplace culture, will continue to contribute to PolyNovo’s ongoing success.
The board has taken appropriate steps to address the issues raised by the DW and SR conflict. However, time will tell. The fact that they have arranged for a consultant to be engaged in ongoing work to improve the communication and relations between board and management provides reason for optimism. I’m pretty confident that the new CEO will be the beneficiary of these actions.
DW has been upfront all along with his desire to have an active board. If such a board has its risks, in my view such risks are less problematic than having a board full of seat-warmers. I want the board to govern. It should certainly work with management in setting clear goals and targets. But the board alone should take responsibility for the direction set. Management’s role is to execute and the board needs to ensure that happens.
I note that the media reporting claimed that Lindsay Maxsted had recommended that DW stand down. On the evidence of the AUSTRAC—Westpac debacle when Maxsted was chairman, I would not be giving much weight to his advice. The Westpac board should have had closer oversight of the business and been more interventionist earlier. In short, Westpac may have not got into as much trouble if its chair had some of DW’s attributes.
PNV Price at posting:
$1.20 Sentiment: Buy Disclosure: Held
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