too many cooks spoil the broth

There are many precedences in companies of resigning/retiring CEOs (who had indicated a willingness to be involved moving forward) being completely removed going forward.

The most recent one I know of is with PMP Limited. CEO, Richard Allely announced his resignation with 12 months to go in his contract, to give the company plenty of notice. The company has already just announced a replacement and further, have told Allely that this services are not needed and have paid him out 12 months in advance and moved him on, for a complete and fresh new start...although this could have all been orchestrated for a face-saving change.

Here is the release from PMP - the parallels are there with what I would love to see at Biota.

"On September 28, 2012 the Company advised that Mr Allely had submitted his resignation effective 30 September 2013. After consulting with Mr Allely, the Directors came to the conclusion that it was in the best interest of shareholders that a new Managing Director be appointed as soon as possible.

The major factor considered by the Directors was the significant transformation plan that is being undertaken by the Company and is expected to take a year to complete. The Directors concluded that the needs of the Company, its shareholders and employees would be best served by having a Managing Director that would both implement the transformation plan and then lead the Company for at least two years after implementation.

Mr Peter George will be appointed Managing Director effective 22 October 2012. Mr George was previously a Non-Executive Director of the Company for nine years and recently accepted an executive role as Chief Operating Officer. Mr George is a seasoned Chief Executive with a strong record in corporate restructure. Mr George was largely responsible for the successful transformation plan of the New Zealand Print business.

During the next week Mr Allely will assist Mr George with client introductions and the transfer of strategic projects. Mr Allely has agreed to be available for advice, when requested, until 30 September 2013. Mr Allely will be paid out the balance of his notice period and all legal entitlements. Mr George’s previous position of Chief Operating Officer will not be replaced.

The Board thanks Mr Allely for his 10 years of service and wishes him well in his pursuit of a non-executive director career."

Muzza, Reiner, Leo, Ecsc, Kangaroo etc who I am in fairly contact with offline, I have some thoughts here if you want to drop me a line.