Gary Paykel stepping down in 2011

Gary Paykel. Photo / Richard Robinson

Gary Paykel intends to retire from the board of Fisher & Paykel Appliances in 2011 and Ralph Waters will step down by the end of this year, the company has revealed in a prospectus to shareholders.

Paykel, 67, has previously stepped around the issue of when he would leave the board and who would take on the mantle of chairmanship.

But the company has come under increasing pressure from institutional investors to change its line-up and bring in fresh directors with more financial experience in the wake of its debt blow-out.

Chief executive John Bongard yesterday confirmed the deal with Haier would see it take two seats on the board.

Bongard said the Haier directors would bring international experience and financial knowledge to the board. Other board changes were buried in its 195-page prospectus to shareholders outlining the capital raising and rights issue proposal.

The prospectus states that Paykel, whose father formed Fisher & Paykel in 1934 with Sir Woolf Fisher, intends to retire from the board in 2011.

Former Fletcher Building chief executive Ralph Waters has asked to retire by the end of this year due to additional board duties elsewhere.

Norm Geary, a former Air New Zealand chief, will not be standing for re-election at the company's August annual meeting.

The board at present has seven directors, not including the two Haier directors. Bongard said the final number would be between seven and nine directors.