http://www.theaustralian.com.au/business/companies/two-vocus-dire...

http://www.theaustralian.com.au/bus...o/news-story/46f9d5d8ca8b5903ce2dbe8225f14ea3


Telecommunications group Vocus has stunned the market with the sudden resignations of founder James Spenceley and fellow board member Tony Grist amid a fallout over the direction of the business.
In a frank statement on the surprise exits, Vocus (VOC) said non-executive director Tony Grist had proposed a chief executive succession plan that would have seen current chief executive Geoff Horth forced out in early 2017.
Mr Spenceley, who led Vocus until the merger with the Mr Horth-led M2, backed the succession idea, but the two board members met significant resistance from within the board.
“The resignations follow a difference of opinion between the departing directors and the board on the future leadership of the company,” the company said.
“Mr Grist had confidentially proposed to the board an alternative leadership framework whereby the CEO would change in early 2017, and board leadership would be formally reviewed over the course of 2017.
“The remainder of the board did not agree with the proposal put forward by Mr Grist, supported by Mr Spenceley, resulting in the company accepting the resignation of Mr Grist, and requesting and accepting the resignation of Mr Spenceley.”

Mr Grist formerly founded Amcom before its takeover by Vocus, with the dealings indicating divisions have formed through a period of rampant acquisitive growth by Vocus that has seen it take control of M2, Amcom and, more recently, Nextgen.

The company’s chairman, David Spence, said he saw no reason to shake up the board and executive team in the manner proposed by Mr Grist given shareholder approval for the team was offered upon the recent combination of Vocus and M2.

“The board is strongly of the view that Vocus is effectively governed and managed, as evidenced by the strong operational and integration results being achieved since the merger with M2, and the proposal would needlessly destabilise the company,” he said.

“While it is disappointing to see the departing directors leave the board, these resignations are in the best interests of shareholders so we can now move forward with a fully cohesive board and executive team that can, and will, provide the necessary unity and leadership required to steer the company through an important point in its history.”

Mr Spence said support for Mr Horth was now unanimous among the board, while a planned search for replacement directors would soon lead to the appointment of an executive recruitment firm.
The board ructions come after a recent sell-off in Vocus shares, tied to concerns around profit growth in a new market environment that will see the national broadband network crimp margins.
Fears were raised last month after rival TPG Telecom’s guidance fell short of market expectations and, despite a brief rebound, Vocus shares struck a 13-month trough last week.

The outgoing executives reminisced on a period of rampant growth as they headed for the exit.
“It has been an incredible journey for both of us in helping build what is considered to be one of the standout stories in the telecoms sector in Australia,” Mr Spenceley said on behalf of himself and Mr Grist.

“More importantly it has been an absolute privilege to have done this with the people who have been most responsible for Vocus’ success which is the wonderful staff (former and current) who have been the true secret to that success.”

Mr Spenceley’s biography on the Vocus website hints at someone unwilling to take a backward step, which was seen crucial in his ability to turn Vocus from a 2008 start-up into a $3.5 billion company.
“As the company’s leading straightshooter, James has steered Vocus through exponential growth in a business environment that is going through seismic change,” the bio reads.
“James is the archetypal maverick. Never afraid to challenge the industry, he’s won the trust and respect of the business and financial community with his open, transparent and refreshingly straightforward approach to business dealings.”