Dell to give up reins at Tenon

Tenon chief executive John Dell makes way for Mark Eglinton in October. Picture / Brett Phibbs

Wood products company Tenon is replacing chief executive John Dell with chief operating officer Mark Eglinton.

Dell, a former Air New Zealand chief financial officer, has been with Tenon since 2001 and chief executive since 2003. Formerly Fletcher Forests, Tenon has been drastically downsized into a company with a manufacturing unit in Taupo and a marketing company in the United States. This transformation has seen $650 million of surplus capital returned to shareholders.

Chairman Tony Gibbs said the departure of "Gentleman John", a "very, very good" chief executive, was the end of an inevitable process.

Tenon had basically become a US-based company and needed its chief executive where its market was. Dell had recognised this. Eglinton, who takes the reins from October 1 , will be based in Maryland.

"I'm sure we'll hear a lot more of John Dell in corporate New Zealand," Gibbs said.

"I think there was a natural progression. When you've got a chief executive like John actually recommending someone like Mark, you listen."

Asked whether Dell would receive a severance package, Gibbs said everybody was comfortable with what had happened and any details would emerge in Tenon's next annual report.