Aryzta, the Swiss-Irish baked goods group, which was convulsed by shareholder unrest in 2020, has appointed a permanent chief executive, almost four years after Irishman Kevin Toland stood down from the role. Michael Schai, a former managing director of Aryzta’s Asia-Pacific region based in Australia, will replace interim chief executive Urs Jordi, who will retain his role as group chairman, the group said in a statement on Monday.
Mr Jordi became chairman following the departure of former Smurfit Kappa chief executive Gary McGann from that role amid shareholder upheaval in 2020. Following a partial boardroom coup that moved the group’s centre of gravity from Dublin to Zurich, the Swiss executive was then also named interim chief executive in November 2020 after former DAA boss Mr Toland’s departure with a 1.77 million Swiss franc (€1.81 million) payout.
[ Revenues at Cuisine de France owner Aryzta see marginal growth in first quarterOpens in new window ]
The Irish executive had taken over a business formed by the merger of Dublin-listed IAWS, best known here for its Cuisine de France brand, and the Jordi-led Swiss group Hiestand under IAWS chief Owen Killian, which subsequently ran into trouble. Investors began agitating after a series of poor results, problems with growth in the US business and a huge mergers and acquisitions binge culminating in the controversial acquisition of a 49 per cent stake in French frozen foods firm Picard.
Concern over the continuing dual role of Mr Jordi had been raised both internally and among investors over the past few years. Meanwhile, two directors who had previously agreed that the dual role continue until late 2024 quit late last year as they sought to bring forward the timeline for the appointment of a permanent new chief executive.
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On Monday, Aryzta praised Mr Jordi for leading the group through “a period of significantly [sic] financial risk and business uncertainty”.
“He leaves his interim CEO role having installed stable experienced management, returned the company to organic growth and significantly improved business performance,” said Alejandro Legarda, chairman of Aryzta’s governance committee.
Mr Schai, who will take up the role in January, previously served in a number of roles at Aryzta between 2015 and 2018, most recently as managing director of its international bun business, based in Australia. He is currently chief executive of chocolate maker Lindt in Australia.
[ Former Aryzta chief Kevin Toland files lawsuit against bakery groupOpens in new window ]
“I am delighted to return to Aryzta as CEO of the group,” he said. “I have followed the success of the turnaround in a period of numerous challenges both internal and external. This is representative of the resilience, commitment and passion of Urs Jordi, the senior executive team, its board of directors and the management and employees.
“I am looking forward to taking the baton from Mr Jordi and continuing the progress and further improving shareholder value.”
Earlier this year, Mr Toland and three other former Aryzta executives launched High Court proceedings against their former employer, seeking “specific performance”, according to court records, signalling they are seeking compensation for amounts to which they claim they are contractually entitled.
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