If the departure of Premier Foods CEO Michael Clarke is a surprise, it’s because he’s been doing a great job, tackling what we had 18 months ago dubbed Mission Impossible with energy and aplomb.
The asset disposal programme is ahead of schedule, realising some decent money, in some cases refinancing is now in place, buying the group time he’s brought in new talent and stripped out layers of unproductive (and often rotten) management and, by focusing on a limited number of ‘power brands’, has given Premier Foods purpose and direction.
OK, Hovis is going through the mill, as it were, but by walking away from The Co-op business, Clarke has shown strength of purpose, while stripping it out from the rest of the business means management can possibly prepare it for sale, but also can identify the levers that need pulling in what is a very different business model, without muddying the waters.
” In Kraft and Coca-Cola, you can make a contribution but when you leave, the well-oiled wheels keep on turning. When you’re fixing a trainwreck, it’s not the same”
Adam Leyland, Editor
But rumours of Clarke’s growing disaffection have been circulating for some time. One industry insider called a Sunday Times profile piece in late October a calling card to headhunters. And one wonders if the appointment of Geoff Eaton as his COO earlier that month was more significant, a recognition of the stresses this Mission Impossible - with both its operational and financial neediness - was placing him under.
Clarke has admitted privately that Premier was in worse shape when he took over than he had been led to believe.
And there is a world of difference between working within the cosseted corridors of giant multinational corporations like Kraft, Coca-Cola and Reebok - where you can make a big contribution, but when you leave, the well-oiled wheels keep on turning - and sorting out a trainwreck.
In contemplating the imminent departure of Martin Glenn a few weeks ago, I argued the value creation model might need to be re-evaluated. I am fairly sure Clarke isn’t going for want of an attractive and achievable bonus pot. Premier even bought out his £1.8m Kraft options. As Gavin Darby enters left , my hunch is Clarke decided he could have more fun, under less pressure, on a different stage.
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