Toll Group MD to step down with $1.25m golden handshake
Toll Group managing director Paul Little will retire in January with a $1.25m bonus, to be succeeded by current chief financial officer Brian Kruger. The Australian logistics giant discussed the transition today its Annual General Meeting, following a year in which the company’s performance was seen as strong despite the difficult economic climate.
After 26 years at the top, the current Toll Group MD will continue his involvement with the firm he took from a small transport company with 125 staff into an $8bn multinational with 45,000 people operating in 55 countries.
Little is to represent the company in dealings with the Singapore government, on a $125,000-per-month retainer throughout next year.
Kruger has been with Toll Group for two years, and since September started the transition process as Managing Director Elect. Before joining the company, he spent 25 years in the metals industry at mining company BHP Billiton and its steel-producing spin-off BlueScope Steel.
Toll Group chairman Ray Horsburgh described him today as having an “outstanding business pedigree”, and that keeping him on board after stepping down as MD would protect Toll from competition. The $1.255m pay-off comes with a 12-month restriction on Little working for a rival.
“Paul will be leaving Toll in great shape, with many opportunities left to be realised,” said Horsburgh. “The company has a bright future with a strong senior management team which will be led by Brian to fulfill its potential.”
Little
After 26 years in charge, Paul Little (left) is to be succeeded as Toll Group MD by Brian Kruger
Little said of his leaving that his time with Toll had been “challenging, exciting and rewarding”, but that it was time to hand over management to Kruger.
“Watching the company grow from very humble beginnings in Melbourne to its current status of the leading global operator in the Asia Pacific is a story all employees can be extremely proud of,” he said.
Kruger said one of his key priorities as managing director would be improving safety in the organisation. “There is no place in our business for injury or accident, and we will do everything we can through training, eduction and other initiatives to mitigate our safety risks,” he pledged.
The new MD has launched a rebranding of Toll businesses and services to bring the entire portfolio under a single Toll banner, with a single work culture among the entire Group.
Results
Commenting on the company’s 2011 year, Little said Toll Global Logistics had achieved a “commendable result in a difficult environment”, winning significant new contracts and retained major customer contracts, with revenue up 3.8% compared to 2010, to $8,225m ($8,537m USD).
Toll Global Forwarding grew organically by 5%, while also concluding four acquisitions.
And, Toll Global Express saw its revenue grow 20% and earnings before tax up 27%, with particular growth at Toll Priority in Australia from the banking and government sectors, while Japan-based logistics operation Footwork Express has been steadily recovering from the major earthquake and Tsunami in March.
Toll Group’s domestic and specialised freight operations saw revenues up 19% and earnings before tax up 10%.
Kruger said expectations were that economic conditions will “remain challenging”, particularly in the retail sector that accounts for about 10% of Toll Group’s revenue.
“Our strategy to increase the spread of our businesses across different markets and geographies, and the growth opportunities we are pursuing, has us positioned very well to manage our way through what are generally tough economic conditions both here in Australia and in some of our overseas markets,” he said.
