The just-resigned CEO of the biggest construction company, Ross Taylor, explains how Fletcher Building has lost hundreds of millions of dollars in a matter of years, and if it can ever be fixed. Video / Carson Bluck
It’s clear he was nudged by the board, perhaps even pushed, but the fact he has put his body on the line for the future of the company he’s spent seven years trying to fix says everything you need to know about the guy.
Yes, he will likely receive a handsome payout on top of the millions he’s already taken home to Australia, but at his level, it’s less about the money and more about reputation.
Fletcher’s litany of failures may taint his, but it shouldn’t.
“As part of getting Fletcher’s to where it is today, it’s been about getting ownership and accountability in the business,” he told me just hours after his resignation was announced alongside a $120 million six-monthly loss on Wednesday.
“I see what I’m doing here as a really important cultural statement.
“I actually think this sets the tone and reinforces the sort of culture we want going forward.”
I called him the fall guy. He replied, “I really don’t see it that way.”
“There’s a whole lot of issues and things I could say, you know, how much of the Convention Centre is my fault? But, I’m the leader, and I’m accountable.”
For an executive who just resigned under a cloud of cost issues, Taylor was relaxed and as onto it as ever, reciting figures about the downturn in the construction sector that has hurt the group’s earnings so heavily.
“You can’t defy gravity,” he said.
Ross Taylor somehow smiled through the day he resigned as Fletcher Building's chief executive. Photo / Carson Bluck
He made a joke the second he entered the room, remembering our last interview in August where I accidentally wore a bright green Fletcher logo-coloured top. I wore red for Valentine’s Day this time, coincidentally matching Fletcher’s financials.
I’m sure anyone who watches our full 11-minute interview above will come to the same conclusion I have: they just got rid of the wrong guy.
But he had to go, and he knew it. Hell, he may have even been happy too.
He told me his decision to leave, alongside chairman Bruce Hassall, was made with the board, not himself or his family. It wasn’t personal.
What is personal is how much he clearly cares for a complex construction web that’s become entangled with legacy issues - none of which, by the way, were his fault.
Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.
Sponsored by CMC Markets.
Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
