Simon Harrison’s sudden departure from Princes Group has left the Liverpool-based food manufacturing powerhouse in something of a lurch.
Due to leave his role on 30 June, Harrison’s decision to seek pastures new has left his current employer facing an unforeseen bind - who will take the helm?
In the interim, chief commercial officer and executive board director Giuseppe Mastrolia will take over (from 1 July), until a full-time replacement is found.
Meanwhile, Harrison will take up the CEO role at homewares manufacturer Ultimate Products, perhaps best known for its ownership of the Salter brand of home and kitchen products.
Such is the game of corporate musical chairs; but what this merry-go-round does illustrate is the importance of having a clear succession plan.
A monumental headache
Harrison’s exit follows a dip in Q1 performance for Princes, in which UK sales fell by 5.6%.
When Harrison’s departure was announced, the board was at pains to clarify that it had nothing to do with these below‑par figures and, although this now appears to be the truth, it did little to calm investors at the time, with Princes’ stock falling sharply, by 13%, in the wake of the news.
Princes’ lack of planning in the event of Harrison’s head being turned has now left the door wide open for months of uncertainty at a pivotal moment for the market.
The last thing a food manufacturer needs in the middle of a global food supply chain crisis is a lengthy chief executive selection process.
And as Julian Wild, director of Wilkin Chapman Rollits, notes, the right successor may not even be available for months once they have been selected.
“All companies should have a well thought through succession plan for whenever senior management retire or leave, planned or otherwise,” he said.
“However, if there are no obvious internal candidates, that will inevitably lead to a recruitment process, which will take many months to come up with the right appointment, who may not be immediately available, causing more delay.”
Who is Giuseppe Mastrolia?
So who is the person stepping into the fold in the meantime? Giuseppe Mastrolia joined Princes Group in July 2024 as a board director following its acquisition by NewPrinces, and was confirmed as chief commercial officer of the unified company shortly after.
Clearly a capable operator at senior executive level, Mastrolia has held the chief commercial role with NewPrinces, and its pre‑takeover entity Newlat Food, since 2014.
A seasoned veteran, then, of both the food manufacturing industry and the c‑suite, Mastrolia should be a safe pair of hands for the business, at least in the interim.
Will Mastrolia be able to steer the Princes ship safely through the choppy waters of the current economic landscape?
He certainly has the experience to do so competently, but with the volatility of modern global geopolitics, some factors will be entirely out of his control.
“This is very destabilising,” Wild added, “but it’s important to have an interim CEO to take up the reins pending the outcome of the process.
“Mastrolia will clearly be a candidate for the top job, but might not have the necessary breadth of experience. When a business like Princes is underperforming, that creates further uncertainty and lack of market confidence. Whoever is appointed has got a tough job on their hands.”
Striking a more positive tone, Mark Field, director of Prof Consulting Group, believes that Mastrolia’s appointment should help calm investors: “Recognising the challenges in the market currently, the interim announcement of Mastrolia, in my view, offers reassurance to customers, suppliers and investors.
“He brings a breadth of experience to the role whilst maintaining key commercial relationships, and should build confidence and stability throughout the coming months.”
Mastrolia takes the reins at a complicated juncture for the business, but ultimately he is a long‑serving company man and, although he may have only worked with Princes Group’s UK‑based arm for two years, on paper he has more than enough industry experience to be, at the very least, an able interim.
And if he performs well in what are difficult circumstances, he may yet prove to be the ideal successor the firm is looking for.
