State of the Market - Board and Executive Movements for September 2019

TOP KEY BOARD AND EXECUTIVE MOVEMENTS IN AUSTRALIA SEPTEMBER 2019

“Blenheim Partners delivered beyond our expectations and showed us what true search can provide. They get to the heart of the matter, they are prepared to give us advice and not sit on the fence, something which is very refreshing. I have used the big 5 search firms over the years and have been told their international coverage will ensure international candidates. It is a fallacy, my experience has been they don’t. Their international colleagues are not incentivised to help the local firm. Blenheim Partners were clear about their model and their international capability. I met more A grade international candidates in my first engagement with Blenheim Partners than I had in five years with the others. Blenheim delivered an exceptional outcome.” CEO, ASX 50 Company •

BACKGROUND Blenheim Partners specialise in: ▪ Executive Search; ▪ Non-Executive Director Search; ▪ Board Strategy and Structure Consulting; ▪ External Succession Planning; and ▪ Executive Re-Engagement / Transition. Founded in 2012, our team have acted as specialist Psychologists, Coaches and exceptionally adviser to many of the world’s leading experienced Researchers. corporations on Board and Executive performance, capability and succession planning. Blenheim Partners is continually investing in knowledge and understanding as exemplified by Our consultants have worked with clients from all our Thought Leadership “The Challenges of sectors and a broad range of geographies. They Attaining Growth”, Industry Papers and monthly include over 80 of the ASX 100, 10% of the FTSE Market Intelligence reports. 100, Private Equity, Multinational, Private Family and Mutually Owned Companies. Our philosophy is to develop deep and committed relationships with a select number of clients and Our work includes assignments that are both local help them deliver a superior performance by and international in scope. optimising the composition of their Board and Executive team. Our team consists of senior Search Consultants, Human Resource Directors, Our culture is built on pride, professionalism, esprit de corps and client service.

THE BROADER LENS OF DIVERSITY WITH MILITARY EXPERTISE Blenheim Partners Executive Search and Board Advisory firm in association with Boral Ltd is working to support a small number of senior military officers to transition to civilian careers after completing highly successful careers with our Defence Forces. These career officers have vast and detailed expertise and experience in areas such as leadership, change management, technology (e.g. cyber security), logistics, supply chain and people management gained in challenging, complex and evolving environments. In the world of disruption and difficulties in attaining growth, diversity of thought and background is a valuable commodity. The individuals we are talking about are very astute, focused and dedicated Australians. They are great motivators, extremely visionary and well connected, (nationally and internationally). They thrive in ambiguity and are able to unlock complicated issues objectively with compassion and consistency, whilst empowering others along the way. In many cases these skill sets and how they were acquired are sometimes different from the commercial world with the potential value not clearly understood. To observe first-hand what these highly successful defence executives may have to offer your organisation, there is an opportunity to engage with them in a short term capacity to work in your company with no ongoing obligation on your part while they are in the process of transitioning from the Defence Force. This would provide you with an opportunity to really understand what their different experience and perspective can add to your organisation. In the United Kingdom and United States many Defence Force senior officers have become CEO’s, Board Directors and Global Consultants. There seems to be a gap between the Australian Defence Force and Corporate Australia in terms of opportunities for talented senior officers and as such, we are taking the initiative to introduce a new level of thinking to support those “taking the risk” through the creation of new programme that to help organisations engage the very best officers. Where diversity of thought is front and central to most executive team and board performance discussions, we have provided below two recent podcasts that illustrate the outstanding skills and leadership qualities such officers have to offer with the aim of dispelling many myths and held views about our defence leaders. Most have more than one degree, can read a balance sheet and with the appropriate support and structure have the capacity to bring an edge that others do not. Major General Fergus ‘Gus’ McLachlan AM Major General Marcus Thompson AM If you would like to explore how your organisation may be able to gain advantage while assisting these proud Australians transition from the Defence Force and learn more about this very important initiative, please contact [email protected] to arrange a teleconference call.

COMMERCIAL SERVICES AHG Ltd: Managing Director John McConnell will leave the company on effective immediately. AP Eagers Managing Director Martin Ward will assume executive responsibility for the merged group. Kelly Partners Group Holdings Ltd: Ada Poon has been appointed as an Executive Director, effective immediately. ENERGY Central Petroleum Ltd: Chairman Martin Kriewaldt has resigned from the Board effective immediately. Wrix Gasteen has been appointed as Interim Chairman. Contact Energy Ltd: Mike Fuge has been appointed as Chief Executive Officer, replacing Dennis Barnes. Mike is expected to start no later than 16 March 2020. Galilee Energy Ltd: Gordon Grieve has been appointed as a Non-Executive Director, effective immediately. Paladin Energy Ltd: Chairman Rick Crabb has notified the Board of his intention to retire from the Board effective 31 December 2019. As part of the transition, David Riekie will be appointed Deputy Chair whilst Paladin completes its search for a replacement Chair. Senex Energy Ltd: Mark McCabe has been appointed as Chief Financial Officer, effective early December. Vahid Farzad has resigned from the Board following the sale by EIG Global Energy Partners of its stake in Senex. Strike Energy Ltd: Neville (Nev) Power has been appointed as a Non-Executive Director and Deputy Chairman, effective immediately. FINANCIAL SERVICES Argo Global Listed Infrastructure Ltd: Company Director Gary Simon has passed away on Friday 20 September 2019. Bank of Queensland Ltd: Interim Chief Executive Officer, Anthony Rose has advised that he will leave on 31 December 2019. Bendigo and Adelaide Bank Ltd: David Foster has been appointed as a Non-Executive Director. Cash Converters International Ltd: Martyn Jenkins has tendered his resignation from the company effective immediately. Katrina Grose will assume the role of Chief Financial Officer in an interim capacity.

Challenger Ltd: Leon Zwier has advised he will retire from the Board and not stand for re- election as a Director at the Annual General Meeting on 31 October 2019. Nick Hamilton has been appointed as Chief Executive, Funds Management effective immediately. Nick replaces Ian Saines who announced his intention to retire from the role in June. Credit Corp Ltd: Trudy Vonhoff and John Nesbitt have been appointed as Non-Executive Directors. Rob Shaw will retire as a Non-Executive Director effective at the 2019 Annual General Meeting in November. Mercantile Investment Company Ltd: James Chirnside, Katrina Langley and Daniel Weiss have resigned as Directors. Melinda Snowden and Peter Velez have been appointed as Non- Executive Directors. All changes effective immediately. National Australia Bank Ltd: Ross McEwan to commence his role as Chief Executive Officer on Monday 2 December 2019. Interim Group Chief Executive Officer, Philip Chronican would assume the position of Chairman from Ken Henry from 15 November 2019. NAB Chief Financial Officer, Gary Lennon will be acting Group Chief Executive Officer from 15 November to 1 December 2019. Perpetual Ltd: Philip Bullock AO and Sylvia Falzon have notified Perpetual of their intention to resign as Non-Executive Directors effective 17 October 2019. Greg Cooper has been appointed as a Non-Executive Director effective immediately. Resimac Group Ltd: Mike Jefferies will retire from the Board effective 26 November 2019. Splitit Payments Ltd: Co-Founder Gil Don has decided to step down from his role as Chief Executive Officer and will take up the position as General Manager, Europe, Middle East and Africa effective 1 October 2019. Mr Don who will remain on the Board will be replaced as Chief Executive Officer by Brad Paterson, currently Splitit’s Managing Director, North America effective 1 October 2019. Suncorp Group Ltd: Steve Johnston has been appointed as Group Chief Executive Officer and Managing Director effective immediately. Westpac Banking Corporation Ltd: Chief Financial Officer, Peter King has decided to retire in 2020. INDUSTRIALS/MANUFACTURING Atlas Arteria Ltd: Fiona Beck has been appointed as an Independent Non-Executive Director effective immediately. Director, James Keyes will be retiring at the 2020 Annual General Meeting. Downer EDI Ltd: Annabelle Chaplain will retire as a Non-Executive Director at the conclusion of the company’s Annual General Meeting.

Fletcher Building Ltd: Peter Crowley has been appointed as a Non-Executive Director, effective 1 October 2019. Peter has also been appointed to the board of Fletcher Building Industries Ltd. Tony Carter will retire at the conclusion of the 2019 annual shareholders’ meeting, scheduled for 28 November 2019. Lycopodium Ltd: Justine Campbell has been appointed as Chief Financial Officer and Company Secretary effective immediately following the retirement of Keith Bakker. Macmahon Holdings Ltd: Bruce Munro and Hamish Tyrwhitt have been appointed to the Board effective 1 October 2019. Service Stream Ltd: Raelene Murphy has advised that she will not be standing for re- election as a Non-Executive Director at this years Annual General Meeting. Chief Financial Officer, Bob Grant has decided to retire at the end of the 2020 financial year. Spark Infrastructure Ltd: Gerard Dover has been appointed Chief Financial Officer effective 8 October 2019. Wagners Holding Company Ltd: Peter Crowley has resigned as a Non-Executive Director, effective immediately. Wesfarmers Ltd: Tony Howarth AO will retire as a Non-Executive Director, effective at the conclusion of the Annual General Meeting on 14 November 2019. MEDIA Ainsworth Game Technology Ltd: Danny Gladstone has been appointed as Chairman effective 2019 Annual General Meeting to be held on 26th November. Graeme Campbell will step down as Chair and assume the role of Lead Independent Director. oOh!media Ltd: Philippa Kelly has been appointed as an Independent Non-Executive Director. Sky Network Television Ltd: Joan Withers has been appointed to the Board of Sky. MINING Alta Zinc Ltd: Geraint Harris has been appointed as Managing Director effective immediately. Alexander Bruns will be reverting to his original role as Executive Chairman. Altura Mining Ltd: Xiaoyu Dai has been appointed as a Director of the company effective immediately. Cardinal Resources Ltd: David Anthony has been appointed to the position of Chief Operating Officer for the Company’s Namdini Gold Project in Ghana, West Africa.

Centrex Metals Ltd: Jim Hazel has advised of his retirement as a Director of the company effective immediately. FAR Ltd: Timothy Woodall has been appointed to the role of Executive Director, Commercial. Metals X Ltd: Milan Jerkovic has resigned as a Director. Nusantara Resources Ltd: Neil Whitaker has been appointed as a Director, effective immediately. Orocobre Ltd: Hersen Porta has been appointed to the role of Chief Operating Officer. Poseidon Nickel Ltd: David Riekie has been appointed as Interim Chief Executive Officer, following the retirement of Rob Dennis. Mr Riekie is supported by incoming Chief Financial Officer, Brendan Shalders who commenced on 9 September 2019. Syrah Resources Ltd: Stephen Wells has been appointed as Chief Financial Officer. David Corr has resigned as Chief Financial Officer. PHARMACEUTICALS/HEALTH CARE Integral Diagnostics Ltd: Dr Jacqueline Milne has been appointed as an Executive Director effective 1 November 2019. Dr Sally Sojan has resigned from the Board effective 1 November 2019. PolyNovo Ltd: Ed Graubart has been appointed as Senior Vice President of PolyNovo North America replacing Kevin Whiteley. Ramsay Health Care Ltd: James McMurdo has been appointed as a Non-Executive Director. Group Finance Director and Chief Financial Officer Bruce Soden will step down from this position effective immediately as advised in May. PROPERTY Abacus Property Group Ltd: Trent Alston has been appointed to the Board effective immediately. APN Industria REIT Ltd: Joseph De Rango has been appointed as Director of Industria Company No.1 Ltd. Aspen Group Ltd: Devron Abdol has been promoted to Chief Financial Officer. GPT Group: Mark Menhinnitt has been appointed as a Non-Executive Director effective 1 October 2019.

LandMark White Ltd: Timothy Rabbitt has been appointed as Chief Executive Officer. Andrea Staines has been appointed as a Non-Executive Director effective immediately. Sunland Group: Craig Carracher has resigned as a Non-Executive Director and Dr Vahid Saberi has been appointed as a Non-Executive Director, both are effective immediately. Viva Energy REIT Ltd: Guy Farrands has announced he intends to step-down from the role of Chief Financial Officer effective 31 March 2020. RETAIL/CONSUMER Bega Cheese Ltd: Patria Mann has been appointed as a Non-Executive Director. BWX Ltd: Rod Walker appointed as a Non-Executive Director effective 1 October 2019. Coca Cola Amatil Ltd: Managing Director Alcohol and Coffee, Share Richardson will be departing the company. Fonterra Co-operative Group Ltd: Simon Israel has decided to step down from the Board at its Annual General Meeting. The Reject Shop Ltd: Steven Fisher has been appointed as Chairman replacing William (Bill) Stevens, effective from 1 October 2019. TECHNOLOGY/TELECOMMUNICATIONS BSA Ltd: Christopher Halios-Lewis has been appointed as an additional Non-Executive Director. Chorus Ltd: Sue Bailey has been appointed as an Independent Non-Executive Director. Anne Urlwin has advised that she will retire as a Non-Executive Director, both changes are effective from the 2019 annual shareholders’ meeting. LiveHire Ltd: Michael Rennie has been appointed as Non-Executive Chairman. Michael will succeed Geoff Morgan who has decided to retire. LiveTiles Ltd: Dana Rasmussen has been appointed as Non-Executive Director. Cassandra Kelly has resigned from the Board. Megaport Ltd: Simon Moore will be stepping down as a Director of the Company. MNF Group Ltd: Chris Last has been appointed as Chief Financial Officer replacing Matt Gepp who has resigned. Nanosonics Ltd: Richard England has retired as a Non-Executive Director.

NEXTDC Ltd: Jennifer Lambert has been appointed to the Board as a Non-Executive Director effective 1 October 2019. Reffind Ltd: Rumi Guzder has been appointed as Non-Executive Chairman. David Jackson has retired as a Director. Spark New Zealand: Warwick Bray and Jolie Hodson have been appointed as a Non- Executive Directors effective immediately. Speedcast International Ltd: Peter Shaper and Joe Spytek have been appointed as Independent Non-Executive Directors effective immediately. Caroline van Scheltinga has informed the company of her retirement from the Board effective immediately. Vocus Group Ltd: Ashe-Lee Jegathesan has resigned as Company Secretary to commence a position as Chief Operating Officer with Uniti Group Ltd. TRANSPORTATION K&S Corporation Ltd: Ray Smith will retire as a Director with effect from the conclusion of the annual general meeting on 26 November 2019. Virgin Australia Holdings Ltd: Lan Xiang has stepped down from his role as Non-Executive Director effective immediately. Kevin Xing has been appointed to take over the role of Non- Executive Director as the nominated representative of the Nanshan Group.

HOW TO SELECT AN EXECUTIVE SEARCH FIRM FOR YOUR NEXT SEARCH ASSIGNMENT One of the most critical questions you will face is how to choose an Executive Search Firm to represent your organisation in the market to acquire key executives that can affect the success or failure of your business. If you choose the right Executive Search Firm then you should get a highly qualified Executive that meets your specific organisational needs who will contribute to the future success of your organisation. If however, you choose the wrong Executive Search Firm your problems will multiply, from the issues of managing the wrong Executive to the consequences of your organisation’s success being compromised versus competitors. To make the right choice is therefore critical, and the following provides some guidance on the factors you should consider in making your decision as to which Executive Search Firm. WILL THEY AND CAN THEY REPRESENT YOU AND YOUR ORGANISATION POSITIVELY IN THE MARKETPLACE? Employer brand is an important consideration in the process of attracting high calibre candidates to your organisation. It is something that is developed and nurtured over many years and the last thing you want is someone representing you who does not understand your brand, your culture and your organisational values. The Executive Search Firm you select will for all intensive purposes be representing your brand in the marketplace. As a consequence, you need to ensure that the firm and those in that firm representing you understand, and are able to pitch your organisation in the best possible light to ensure the attraction of high calibre candidates, especially passive candidates.

WHAT PROCESS DOES THE EXECUTIVE SEARCH FIRM UNDERTAKE IN THE IDENTIFICATION OF CANDIDATES? The role of the Executive Search Firm is to find you the absolute best candidates in the market that match your brief. The process they employ is critical to achieving this outcome. If the process is poor, such as using their database and using job boards, the reality is you will not get the best candidates. You will simply be conducting a recruitment process which is generally reserved for lower level rather than Executive roles. In Executive Search you want the best candidates and that definitely needs to include passive candidates in the market. The only way to identify passive candidates is by research. To assess the research capability of your Executive Search Firm, ask them to explain their process for identifying passive candidates and in your client reference checks specifically ask client references as to the quality and breadth of the identified potential candidates. WHO WILL BE THE LEAD PARTNER AND THE TEAM FOR YOUR EXECUTIVE SEARCH AND HOW STRONG IS THEIR DESIRE AND COMMITMENT TO YOU THE CLIENT? The Lead Partner or Lead Partners (if you are lucky enough) are critical to the success of the Executive Search. You want to ensure that they are absolutely committed to your assignment and have the desire to ‘leave no stone unturned’ in ensuring that you get the very best candidates available in the market for your consideration. WHAT ARE THE “OFF LIMITS”? As a client when you engage an Executive Search Firm you are working on the basis that they are finding you the very best candidates for consideration in the market. You need to test this and ask yourself whether they can put up candidates for your consideration from their other client companies who they have or are working for. This is where the term “Off Limits” comes in. This fact is very important to you because the larger the “Off Limits”, the less of the market an Executive Search Firm is able to cover to access the best candidates. In simple terms, this means they will NOT be able to get you the best candidates in the market. If you think this through, the consequence is significant, because if your Executive Search Firm cannot access the best candidates in the market, but only a subset, you are not getting what you want or are paying for. So why would you engage them in the first place?

DOES YOUR EXECUTIVE SEARCH FIRM UNDERSTAND THE ROLE YOU ARE SEEKING AND THE NATURE OF THAT MARKET? This is fundamental, because if the Executive Search Firm and the Lead Partner in particular does not understand the role or the market, how can they undertake a search to find you the very best candidates? IS YOUR EXECUTIVE SEARCH FIRM AND THE LEAD PARTNER ACTIVE IN THOUGHT LEADERSHIP IN THE MARKET? Thought leadership is the ability to be continually thinking and researching how the market is changing, both in the broader sense and in the specific market in which your organisation operates. The reason this is important is because you want your Lead Partner to be thinking of the role you have today and what it might evolve into tomorrow. By knowing this, or at the very least having some context of the potential changes, your Executive Search Firm and Lead Partner can be pro-active in putting forward to you candidates for consideration that are right for your business of today, and others who may be right for your business of tomorrow. IS THERE AN AT-RISK COMPONENT OF THE FEE THAT ENSURES THE EXECUTIVE SEARCH FIRM HAS SKIN-IN-THE-GAME? There is nothing quite like an alignment between client and service provider needs, to ensure in this case your Executive Search Firm is listening to your needs as the client and going the “extra mile” to deliver against them. While an at-risk or performance component is not common in the Executive Search Industry you should take the opportunity to ask if there is such a component in the fee structure of the Executive Search Firms you are considering. If there is such a component, it can give you some comfort that you and your chosen Executive Search Firm will be aligned in achieving the common objective of the very best candidates in the market for your role. HOW MANY OF THE EXECUTIVE SEARCH FIRM’S CLIENTS ARE REPEAT BUSINESS? The ultimate test for all businesses is the repeat client test. It is the ultimate measure of client satisfaction because if a client keeps coming back for additional services from the Executive Search Firm you are considering, then you can be reasonably assured that the quality of their offerings is high and meeting the client’s needs.

WHAT DO CLIENT REFERENCES SAY? At the end of the day, the test of what an Executive Search Firm tells you in their pitch for your work versus the reality of what they are doing is by client references. Ask for and take the time to speak to a number of the Executive Search Firm’s clients, and test their performance against all of the above criteria with the client references they provide. Ultimately, by following the above you will be far more confident in the Executive Search Firm you select being able to deliver to you and your organisation the very best candidates in the market for the role you are seeking for your organisation.

DO YOU REALLY UNDERSTAND “OFF LIMITS” IN EXECUTIVE SEARCH? IF YOU DON’T, MAYBE YOU SHOULD “OFF LIMITS” – WHAT IT MEANS IN EXECUTIVE SEARCH Executive Search firms are professional services firms that undertake the process of Executive Search to find high quality executive candidates for their client companies. As a client when you engage an Executive Search Firm you are working on the basis that they are finding you the very best candidates for consideration in the market. But “are they” or indeed “can they”? By “can they” I mean can they ethically provide you the best candidates when they are working for other clients. That is can they put up candidates for your consideration from their other client companies who they have or are working for. This is where the term “Off Limits” comes in. “Off Limits” is a convention in the Executive Search industry that in simple terms means that an Executive Search firm who has been retained on a contingent basis by a client will place the interests of their client at the forefront, meaning that they: • Will not recruit from the department of a client where they have placed someone; or • Will not recruit from the company of a client where they have placed someone. Conventions vary but in general this period would be for two years following their last placement of a candidate and never the actual candidate.

WHY YOU NEED TO CARE This fact is very important to you and you do need to care as a client because the larger the “Off Limits”, the less of the market your Executive Search firm is able to cover to access the best candidates. In simple terms this means they will NOT be able to get you the best candidates in the market. If you think this through, the consequence is significant, because if your Executive Search firm cannot access the best candidates in the market and only a subset, you are not getting what you want or are paying for. So why would you engage them in the first place? BIG AND GLOBAL FIRMS VS BOUTIQUE FIRMS Thinking through the above it becomes abundantly clear the bigger your Executive Search firm, and further, if it is global, the less of the candidate market you have access to as a client. This may sound counterintuitive as you would normally think the bigger the firm and the greater their global footprint the greater their ability to find you the best candidates in the market. As can be seen from the above however this is not the case and the boutique firm will in most cases be better placed to provide you with the greater market coverage and access to the best candidates as it has less “Off Limits”. HOW BEST TO DEAL WITH “OFF LIMITS”? So how best to deal with the “Off Limits” issue as a current client and a potential client? Firstly, as a client, make sure you ask your Executive Search Firm two key questions: • What is your client list over the past two years and which of these can you not access candidates from for my search? • At the completion of my Executive Search how will “Off-Limits” apply to my company? That is will you now not target any of my staff for the next two years at the completion of my Executive Search? It is important to know this upfront, as clarity at this point will make the road smoother down the track in your dealings with Executive Search firms.