Tenon, Rubicon boards trim

By PAM GRAHAM

Rubicon has shrunk its own and Tenon's board, canned controversial incentive schemes and made peace with Tenon management.

"The significance of what has happened today is not only at Tenon but at Rubicon," said Tony Gibbs, executive director of Guinness Peat Group, which owns 19.9 per cent of Rubicon.

Control of Tenon changed hands after Rubicon's successful takeover offer for 50 per cent of the company.

Tenon shares closed yesterday up 3c at $1.97, 2c higher than Rubicon's takeover offer.

Gibbs becomes chairman of a Tenon board that has reduced from six to five.

His fellow directors are Michael Andrews, Rodger Fisher, Luke Moriarty and Michael Walls.

Andrews, Gary Weiss, John Villiger and Jouko Virta exit the Rubicon board, which reduces from nine to five members.

US-based forest investor Stephen Kasnet becomes Rubicon chairman and Hugh Fletcher, Gibbs, Moriarty and Bill Hasler stay on the board.

Directors' pay has not been disclosed yet but a scheme that gave non-executive Rubicon directors options instead of fees has been wound up, as has an arrangement that gave chief executive Moriarty tracking units. He has invested after-tax gains from the tracking scheme in Rubicon shares on-market.

Gibbs and Moriarty met Tenon's senior managers individually yesterday. "I think we're all on the same page and I don't see any changes with the management team at all," said Gibbs. Moriarty said the meetings were very positive.

The situation is different from a year ago when GPG was in court with fellow Rubicon stakeholder Perry Corp and took issue with disclosure of executive incentives.

"They are businesspeople at the end of the day. They will do whatever it takes to make money," said Rickey Ward, of Guardian Trust Funds Management. He sees the latest events as a "Rubicon deal, not a GPG deal".

Walker Capital Management disclosed a 5.1 per cent shareholding in Rubicon yesterday. Stephen Walker said his company was buying more Rubicon shares as it took on more funds under management, rather than increasing its weighting.

"We like what Tenon has done and have no problem with the current management," he said.

It would be easier for that management team to answer to one shareholder now.

Shareholders Association chairman Bruce Sheppard, who has been a critic of both Tenon and Rubicon, said Gibbs needed to focus on Tenon, not Rubicon or GPG.

Rubicon chief executive John Dell said no specifics about strategy were discussed at yesterday's meetings.