Tom Gorman is retiring as Chief Executive Officer of Brambles Limited, and as a Director of the Company. He steps down as CEO, effective February 28, 2017, and retires from the Brambles Group on June 30, 2017.
The Brambles Board has appointed Graham Chipchase to succeed Mr. Gorman. Until June this year Mr. Chipchase, 53, was Chief Executive Officer of Rexam plc, one of the world’s largest consumer packaging companies with operations in over 25 countries. He joined Rexam in 2003 as Finance Director and successfully managed the company’s plastics division until his appointment as CEO in 2010.
During his tenure as CEO, Mr Chipchase refocused the company’s strategy on core operations and strengthening customer relationships. He also improved the financial position of the business and delivered significant economic value to shareholders. He left Rexam in June 2016, following the acquisition of the company by US-based Ball Corporation. Mr Chipchase is also a non-executive director and chairman of the remuneration committee of AstraZeneca plc.
Mr. Chipchase will commence with Brambles as CEO designate at the beginning of January 2017 and work closely with Mr. Gorman in the two-month transitional period until Mr. Chipchase takes over as CEO in March. Mr. Gorman will also be available to assist Mr. Chipchase until the end of June.
In making the announcement, Stephen Johns, the Chairman of Brambles Limited, recognized Gorman’s contribution to the company over the past seven years as CEO. “Tom was appointed CEO in October 2009 and he has worked tirelessly to re-focus our Company and deliver value for our customers, our employees and our shareholders. Total shareholder return from the date Tom was announced as CEO up to 12 August, 2016, was 145% . He leaves Brambles in a strong financial and market position with a clear focus on delivering on commitments.”
“It has been both a pleasure and an honour to work with so many great people at Brambles,” Gorman added. “I am extremely proud of what our people have been able to accomplish during my tenure as CEO and am proud of the strong foundation for continued profitable growth I have helped establish. My decision to retire was not easy but I believe this is the right time for me to leave. Brambles is in great shape, our strategy is sound, and our team is aligned and committed. I wish Graham every success and I am looking forward to my future away from full-time executive life.”
“After completing an extensive CEO succession process that considered internal and external candidates, the Brambles Board is delighted to have found a candidate with Graham’s ability and experience to take Brambles forward and build on our strategy of customer focus, disciplined capital allocation, and profitable growth,” Johns added. “Graham has extensive and successful management experience leading a large FTSE listed company in a global business with similar characteristics to Brambles. He brings an impressive track record of success to the Brambles CEO role.”
Mr. Chipchase said it was a privilege to be appointed as the next Brambles CEO. “I’m excited to be asked to lead one of Australia’s iconic companies and one of the world’s most successful supply chain solutions groups. I will be inheriting an organization in a strong financial position with a clear value-creation strategy in place. I look forward to working with everyone at Brambles to ensure a smooth transition and to continue to deliver for our customers, employees, and shareholders.”