F & P Appliances chairman leaves earlier than planned

Gary Paykel indicated this year he wanted to leave the board by August 2012. Photo / Paul Estcourt

Fisher & Paykel Appliances chairman Gary Paykel is to stand down and will be replaced temporarily by Ralph Waters.

Paykel, who will remain as a director for now, had this year indicated he would leave the board by August 2012 as part of the company's capital raising prospectus. Waters had also hoped to leave the board by the end of this year but was asked to stay on by Paykel.

Waters, a former Fletcher Building chief executive, will remain in the role until a number of key decisions, including the chief executive appointment and board refreshment were completed and the company was on a more stable footing.

The company said Paykel, 67, had decided the time was now right to step down after the introduction of Chinese company Haier as a cornerstone shareholder and after the company had completed its capital raising this year.

Paykel joined Fisher & Paykel Industries in 1960 and has held a number of roles at the company.

He has also served as a director of Team New Zealand since March 2004 and is a Companion of the New Zealand Order of Merit.

He became chairman of Fisher & Paykel Appliances in 2001.

The board is still considering who will replace John Bongard as chief executive. He left the company several months ago after revealing a fight with prostate cancer.

Waters said that beyond resolving the leadership in the very short term, the major challenge for the company within its control was to lift production rates in the Thailand and Mexico factories. The major issues outside the company's control were a recovery in the US market and the early signs of rises in material prices.

The company was addressing these issues and had formulated plans to deal with them. F&P Appliances shares closed up 2c at 65c yesterday.

- NZPA