The a2 Milk Company Ltd (ASX: A2M) share price is edging higher this morning after the leader in a2-only protein dairy products unveiled its new CEO.
Who will take the top job?
a2 Milk announced this morning that David Bortolussi would soon to be stepping into the role managing director and CEO. David will succeed interim CEO Geoffrey Babidge, who temporarily took back the reins when Jayne Hrdlicka “agreed to step down” in December 2019.
David will be based in Sydney and given the six month notice period required by his current employer, is expected to commence in early 2021.
David’s experience primarily lies in the consumer and retail sector. After joining the formerly ASX-listed Pacific Brands as Chief Financial Officer & Operating Officer in 2009, David was appointed CEO in 2014 until it was acquired by US-listed retailer HanesBrands. David is currently the group president for international innerwear at HanesBrands.
Prior to joining Pacific Brands, David held senior roles at Foster’s Group, McKinsey & Company, and PwC.
In today’s ASX release, a2 Milk said David has many strengths that make him well suited to the company at this stage of its growth. This includes extensive international leadership experience in the consumer and retail sector, particularly in corporate strategy and business transformation with a focus on brand development and innovation, multi-channel management and supply chain operations.
Management commentary
Commenting on the announcement, a2 Milk Chair, David Hearn, said: “Following an extensive global search, the Board is delighted to have secured David for this role. David has demonstrated significant skill in guiding businesses through periods of significant growth whilst also effectively managing the changes that expansion frequently requires.”
Meanwhile, David Bortolussi said: “I have always admired The a2 Milk Company’s achievements and I am looking forward to joining the board and management team to continue the development of such an extraordinary business. The team at a2 has created a very distinctive consumer proposition, amazing brand and strong culture with so much potential. I’m thrilled to have the opportunity to lead such a talented and experienced team, and to be part of the next phase of growth”.
Now what?
David will be paid a fixed salary of $1.75 million per year (including super), which will be reviewed annually. He will also receive an allowance to relocate from Melbourne to Sydney.
Additionally, on a one-off basis, David will receive transition benefits as partial compensation for the incentives he will forfeit on resigning from HanesBrands. These transition benefits include a $1.27 million cash payment on the day he commences at a2 Milk, as well as $3.7 million of rights to acquire ordinary shares.
Jayne Hrdlicka caused a stir when she sold most of her transition shares across 2018 and 2019, so it will be interesting to see what David chooses to do with his. In any case, this is a positive step forward following Jayne Hrdlicka’s questionable exit at the end of last year.
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