Boral chairman Ryan Stokes is pushing ahead with the next phase of the group’s transformation, appointing Vik Bansal to the top role to oversee an improvement in its operational performance.
Mr Stokes — also chief executive of Seven Group Holdings, which has a 70 per cent stake in Boral — said as the major transformation was now done following the divesting of overseas assets to focus on Australia, it was now time to execute the strategy effectively and drive shareholder returns.
“The business is in need of an operational leader ... Vik has an operational focus and will get the outcomes,” Mr Stokes said.
“He is the right leader to guide the company into a new era, with a proven track record, most notably his performance at Cleanaway.”
Mr Bansal was the chief executive of waste group Cleanaway for six years before he resigned in January last year in a “mutually agreed” decision with the board following allegations about a “culture of bullying and harassment” under his leadership.
Mr Stokes said the board had done extensive due diligence on Mr Bansal before confirming his appointment.
“You don’t get the success he had at Cleanaway without strong cultural alignment ... and prominent business leaders spoke on his behalf,” Mr Stokes said. “I believe that leaders evolve and grow.”
The CEO appointment was backed by investors, with Boral’s shares closing 14.7 per cent higher to $3.28.
Mr Bansal, pictured, said Boral was an iconic and compelling business with great assets and a well-respected and motivated workforce.
“I am excited to be part of Boral’s next phase of creating value for all its stakeholders through a culture of safety, and focus on service, sustainability and simplification,” he said. Zlatko Todorcevski, who has been chief executive of Boral since July 2020, will depart by December as Mr Bansal serves out a six-month notice period at InfraBuild, which he has been running for the past year.
Mr Stokes thanked Mr Todorcevski for his contribution to the business and for continuing to lead the company during the transition.
“Over the last two years, Zlatko has overseen significant change, including a roadmap for the company’s transformation, the successful sale of non-core assets and the return of proceeds to investors,” he said.
Mr Todorcevski said he was proud of his achievements at Boral and acknowledged the work of his team.
Seven Group Holdings has a majority stake in Seven West Media, publisher of The West Australian.