Goodman Fielder appoints new CEO

Goodman Fielder, the food ingredients manufacturer, has appointed a new chief executive after its last head left at the end of April.

The company has tapped Chris Delaney, formerly president for Asia-Pacific for the Campbell Soup Company, as its new CEO.

Chairman Max Ould has been acting chief executive since Peter Margin left at the end of April.

Delaney, who had worked for Campbell since 2004 until recently and who was educated in the US, will start at the trans-Tasman food giant on July 4.

Before joining Campbell, Delaney had worked for consumer products manufacturer Procter & Gamble Co. in the US, Middle East, Ukraine, Belgium and Poland.

"He has a track record for innovation in a dynamic market and has helped build some of Australia's most iconic brands," Ould said.

"He will also bring on board a new strategy for driving efficiencies and growth across our businesses."

Delaney's base salary, including superannuation, will be A$1.325 million with a short-term annual incentive of up to 75 per cent of his base salary with a quarter of that paid in Goodman Fielder shares with a 12-month vesting period and the remainder paid in cash.

His long-term incentive (three-year plan) will be up to 100 per cent of his base salary if he meets a specified target and up to 150 per cent of his base salary if he meets "stretch targets."

The targets are based on total shareholder returns compared with a comparable group of companies.

Delaney will also receive a one-off grant of one million share rights, half of which will vest on the third anniversary of his start date and the other half which will also vest then, provided earnings-per-share targets are achieved.

The vesting of his share rights will be subject to his ongoing employment and, on termination of his employment, unvested share rights will vest on a pro-rata basis, subject to relevant pro-rata performance.

Delaney has been engaged on a four-year contract and will be entitled to either 12 month's notice or payment in lieu. However, Delaney can choose to leave after giving six months notice.

Due to a non-compete restriction from his previous employer, Goodman Fielder's biscuit business will remain out of Delaney's scope until March 31, 2012.

Former CEO Margin was paid a total of $2,118,790 including a base salary of $1,447,220 in the year ended June 2010.

"There is significant potential for Goodman Fielder and its brands in local and regional markets," Delaney said.

"Several critical areas I will be looking at closely are the development of regional trade prospects, innovation streams and the company's relationships in supply and chain management," he said.

One of Delaney's first jobs will be to appoint a new chief financial officer to replace David Goldsmith who left the company on February 23.

Given the challenges Goodman Fielder faces - it said just before Margin left it expects its full-year net profit could be down as much as 24 per cent on the previous year following a soft March quarter - analysts have been concerned the company has been leaderless for so long.

Goodman Fielder shares rose 1 cent to $1.38 after Delaney's appointment was announced. Earlier this month, they fell as low as $1.31, their lowest level since the depths of the global financial crisis in early 2009.

They have fallen from $2 last November.

The stock fell out of the MSCI Australia Index today, meaning investors that typically track indices will exit their holdings.