ISELIN, N.J.—Rubber latex glove producer Ansell Ltd. is preparing for an orderly transition of its leadership team now and in the future.
It recently unveiled a board of directors and senior management succession plan that focuses heavily on the firm's managing director, CEO and board chairman posts. The company said the plan best facilitates the injection of new skills and thinking while retaining a fair degree of corporate knowledge.
Tying in with its plan was the decision by Magnus Nicolin, who has served as managing director and CEO since 2010, to continue leading Ansell until the end of the 2021 financial year, at which time he intends to retire.
Chairman Glenn Barnes also said he will stand for re-election as a director at the 2017 annual general meeting, which a spokesman said will be held on Oct. 20, and intends to retire at the 2019 annual general meeting.
He was appointed to a non-executive director's post in September 2005, a spokesman said, and named chairman of the health and safety protection product manufacturer in October 2012.
Both announcements were made at the end of May.
It's important at this point for the company to set the plan in motion as it implements its wide-spread strategic growth program and reshapes the firm's operation following the announced sale of its Sexual Wellness business, which is expected to close in late September, according to a company official.
Ansell said its new management succession plan is progressing well, and the board of directors has identified potential candidates to make up the next generation of its senior leadership team along with a CEO to eventually replace Nicolin, reaffirming the firm's strong commitment to developing internal talent.
Its CEO candidates have demonstrated strong leadership potential in their current positions, according to the company.
The board now is looking to further evaluate the candidates' leadership skills in the group context and to provide the candidates with additional assignments that continue to test and build their capacity and capability, and to give them further exposure to the board, investors and capital markets, it said.
While Ansell is a complex business operating in a wide range of markets in numerous countries, the overall size of its board of directors is small compared to its peers, which Ansell said gives it more agility and is less costly.
Currently, the board is undergoing some changes.
Dale Crandall said on March 3 he will retire from the board at the 2017 annual general meeting. He served as a director and as Ansell's general counsel for almost 15 years. In addition, Ronnie Bell will retire from the board at the 2018 meeting.
On May 19, Sydney-headquartered Ansell, which has its U.S. base in Iselin, announced that Christina Stercken will become a member of the board on Oct. 1.
Meanwhile, it said Bill Reilly will seek election to the board at the annual general meeting to replace Crandall.
Reilly has 17 years of experience with Ansell and will serve as a non-executive director. While he was selected for his business acumen, legal skills and independent mind, as a recently retired executive of the company he will not be an independent director because of his previous involvement with the company, the firm said.
Boards of directors generally aim to maintain a balanced board with some independent directors along with others who have had a long association with the company to ensure fresh views on how operations are run.
With its phased senior management succession plan, Ansell said it expects to add new skills and experience and maintain continuity.