Praemium to appoint new permanent CEO after GSM
Praemium’s board has decided to retain Robert De Luca as the company’s interim chief executive until the next general shareholders meeting (GSM) scheduled for May.
Last week, the group of shareholders led by the company’s former CEO, Michael Ohanessian, whose contract was terminated in February, requested the company to hold the meeting, during which they would vote on the removal of the current directors and “any person appointed as a director of Praemium on and from 14 March.”
The company said in a letter to its shareholders, announced yesterday on the Australian Securities Exchange (ASX), that the board faced a dilemma of whether it was the best time to appoint De Luca as its permanent CEO.
“Mr De Luca will likely be dismissed by the incoming board to make way for Mr Ohanessian’s return,” the company said.
“This would be costly for the company, and your board does not wish to expose Mr De Luca to this risk, nor our shareholders to the risk of that cost.
“Accordingly, we have decided to retain Mr De Luca as interim CEO of the company until the meeting. We intend to appoint him as permanent CEO after the meeting, subject of course to the outcome of the voting on the resolutions,” it said.
Following the termination of Ohanessian’s employment, Praemium sourced De Luca as its interim CEO and the board concluded that he would make an “outstanding permanent” chief executive for the company.
According to some media there was a group of shareholders who wanted Ohanessian to return to his former role as CEO of the company, Praemium said.
According to Praemium, the decision regarding the termination of Ohanessian’s employment “was certainly not taken lightly” and that the board had considered that his continued employment would lead to a situation in which the directors “could not properly discharge their duties while Mr Ohanessian remained CEO”.
De Luca, who was Bankwest’s managing director over the past five years, also has broad financial services experience in the CBA Group, which included relevant experience in the wealth management, financial planning and platform space.
AUTHOR
Oksana Patron
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
