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Vector chairman Michael Stiassny says chief executive Mark Franklin's resignation yesterday, the latest in a string of top level departures at the power lines company, indicates the end of a growth phase rather than ongoing leadership problems.
Franklin leaves after 4 1/2 years in the job, but he will remain for several weeks to ensure an orderly handover with chief operating officer Simon Mackenzie filling in as chief executive until a successor is found.
Stiassny's reportedly difficult relationship with Franklin and other senior management people is believed to have been a factor in the resignation last year of independent directors Tony Gibbs of Guinness Peat Group, Greg Muir, the CEO of Pumpkin Patch, and John Goulter, former managing director of Auckland Airport.
Since then the company's chief financial officer Peter Fredricson has also resigned.
Yesterday, Stiassny downplayed the significance of the string of departures and said he and Franklin had enjoyed a good working and personal relationship.
However, Muir asked: "Why, if the company is performing so well and everything is okay, would three directors leave, then the chief financial officer and then the chief executive? It's an extraordinary situation and would tend to suggest there's something wrong elsewhere."
Gibbs, who stood by his comments that he and Muir were told by Franklin last year that Stiassny was micro-managing him and other senior executives, said he was not surprised by Franklin's resignation.
Franklin, who has denied complaining to Gibbs and Muir about Stiassny, yesterday said his relationship with the chairman had been "interesting".
"I don't think you have to be best friends between chairman and CEO. You just have to understand the roles that you both play."
During Franklin's tenure Vector acquired and integrated UnitedNetworks and Natural Gas Corporation (NGC). And while Vector remains majority owned by consumers - through the Auckland Electricity Consumer Trust - a quarter stake was floated on the market two years ago.
Franklin said: "I've reached a point where as a custodian of the organisation I've seen a significant part through, so it's a good time to have a break."
Stiassny said overseeing growth was Franklin's forte.
"He enjoys it, bringing people in, putting them together, and climbing that hill. We have currently climbed the first major hill, we're now at the top, we need some consolidation.
"We're reviewing our strategy, we're looking at options but I don't think we're going to go through a significant growth phase ... in the next period, hence the change."
In the past two years the company has locked horns with the Commerce Commission over pricing but it has now reached a preliminary agreement with the regulator.
Stiassny said the company must now tighten aspects of its operation as regulation meant it didn't have much control over its revenue line.
"Mark's saying, 'I don't want to be the man who tightens those screws, or whatever, to that degree'," he said.
A spokesman for a local fund manager said there had been some concerns in the market about the way Franklin handled the company's relationship with the Commerce Commission.
Vector shares closed 3c lower at $2.63 yesterday.
