Fletcher Building Appoints New Director Amid Leadership Shake-Up

Fletcher Building has announced the appointment of Tony Dragicevich, the managing director and CEO of Australian aluminium manufacturer Capral, to its board, effective August 1. The New Zealand Exchange (NZX)-listed company confirmed this in a market announcement on Monday morning.

Barbara Chapman, Fletcher Building's acting chair, praised Dragicevich's extensive experience in leading distribution and manufacturing businesses across Australia and New Zealand. “His successful career in the building products sector, combined with his strong track record of delivering value for shareholders, makes him an excellent addition to Fletcher Building’s board,” she said.

Dragicevich, who has been with Capral since 2013, previously served as managing director and CEO of Wattyl Group and as CEO of GWA Bathrooms and Kitchens. He also held leadership roles at Red Paper Group and Carter Holt Harvey Insulation. Born in New Zealand, Dragicevich graduated from the University of Auckland with a commerce degree.

Fletcher Building's board is undergoing significant changes. Acting Chair Barbara Chapman will be joined by Dragicevich, Cathy Quinn, Sandra Dodds, and Peter Crowley. However, the company has yet to appoint a new chair following the departure of former chair Bruce Hassall earlier this year.

Recent board upheavals include Mark Cairns, former Port of Tauranga CEO, withdrawing his candidacy for chair, citing dissatisfaction with the recruitment process. Cairns' criticism highlighted the ongoing challenges within Fletcher Building's leadership transition.

Greg Smith, head of retail at Devon Funds, expressed disappointment over Cairns' withdrawal, noting his strong standing and support from shareholders. Cairns' frustration pointed to the broader issues facing the company's governance.

Fletcher Building is also searching for a new CEO and CFO following a $120 million first-half loss that led to the resignations of former CEO Ross Taylor and chair Bruce Hassall. Board members Martin Brydon and Rob McDonald also departed on June 30, further emphasizing the company's leadership turmoil.

Amid these changes, Allan Gray, Fletcher Building’s largest shareholder with a 14.1% stake, has expressed confidence in the board's direction. Analyst Sudhir Kissun from Allan Gray emphasized the importance of patience in selecting the right chair and directors during this critical period.

Fletcher Building has been actively engaging with shareholders to address concerns and outline its strategic priorities. The company enlisted Australian communications specialist Domestique Consulting for shareholder consultations and has held direct discussions with major stakeholders.

The company's next major update will be its full-year financial results, scheduled for August 21.