The former CEO had fired the managers who assessed the risks of tendering and no doubt put the pressure on the estimators to sharpen their pencils and win jobs. Nothing wrong with fixed price tenders as such, but they need to be properly managed. Clients hate 'tagged' tenders (ie making a bid not in strict accordance with the client's documents), hence the pressure for clean fixed price bids. The Board Chair who is paid NZD550k per year was asleep at the wheel and finally woke up when it was too late despite alarm bells ringing.
It is already a requirement of NZ listed companies (FBU is NZ and Au listed) that a third of the Board retires each year and can seek re-election but will no doubt find resistance to re-election. The NZ Shareholders Association is on the warpath with FBU and will stir up major shareholders prior to next AGM.
FBU Price at posting:
$6.51 Sentiment: None Disclosure: Not Held
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