Call for changes in leadership team
The appointment of two independent nonexecutive directors is unlikely to remedy Aspen's woes
Pharmaceutical company Aspen's tumultuous six months, which culminated in an almost 50% crash in its share price, has resulted in a call for an overhaul of the board and splitting of the business. Zwelakhe Mnguni, chief investment officer at Benguela Global Fund Managers, said this week a change to the management team would work wonders for the company and that it could be time for its founding group CEO, Stephen Saad and his deputy Gus Attridge, to resign. "These guys started the business, they are emotionally attached to it and it's no longer about generating returns, it's about the prestige," Mnguni said. The appointment of Kumba Iron Ore CEO Themba Mkhwanazi and former Standard Bank joint-CEO Ben Kruger as independent nonexecutive directors was unlikely to remedy the situation, he added. "I doubt that board members would have the ability to stand up to [Saad]. He's not an easy guy to deal with and those board members would always have to respect that he founded the business with...
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