Enter the ‘white knight’? Premier needs to replace Schofield now, industry sources insist
A report in The Telegraph yesterday said that institutional investor Paulson & Co (Premier’s second-largest shareholder with an 11% stake) would ask chairman Ronnie Bell to expedite the search for a replacement. Private equity group Warburg Pincus holds more than 20% of the firm.
Asked about progress towards replacing Schofield, who has overseen 10 profit warnings since taking the job in 2002, and is due to retire by April 2012 at the latest, a Premier spokesman said: "The board is making good progress with the succession plan and is currently interviewing candidates.”
Back to square one
FoodManufacture.co.uk understands that Premier is looking at both internal and external candidates, and that a new ceo could be in place by the autumn, although major investor pressure could lead to a more rapid change.
This follows Premier’s release of its half yearly trading statement last Thursday, which one City analyst told FoodManufacture.co.uk was a “disaster”. Investec Securities said in a note this morning, took Premier “back to square one … and a half”.
Asked if Schofield should depart immediately, the analyst said:“Not necessarily, the most important thing is that they find the right successor.”
Chief operating officer (coo) Tim Kelly had been tipped as the heir apparent to Schofield, and even as an interim appointment, but the analyst said: “Appointing Kelly as interim ceo would not change a great deal, and an external appointment is more likely.”
Rising multi-national star
It was reported this morning that frozen foods giant Birds Eye Igloo's ceo Martin Glenn (former PepsiCo UK boss) had rejected an approach from headhunters attached to Bell in regard to the position.
The analyst added: “Premier is a predominantly branded business, and we would have thought that a rising star from one of the multi-nationals with proven brand experience – possibly on the verge of a move up to board level – might like to take on the challenge at Premier instead.
“There’s no visibility there, but as soon as Schofield goes and a successor takes over the better. They need a fresh face, and appointing Kelly as ceo won’t make a great deal of difference.”
Another industry commentator said “Kelly is the heir apparent. But will that happen? He was made coo a year ago, and some people thought “Hmm…”, as his Rank Hovis McDougall (RHM) record [Kelly joined Premier in 2007 after it took over RHM] isn’t exactly stellar.
“I don’t see a short way out of it at all. Premier needs stability and brilliant leadership – but the white knight certainly isn’t coming from within.”
FoodManufacture.co.uk was unable to reach Paulson & Co for comment.
