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Category: Business, Economics and Finance / Retail

Rob Scott to take Wesfarmers' reins from Richard Goyder

Tuesday, 14 Feb 2017 11:30:14 | Graeme Powell

Wesfarmers' executives Richard Goyder, Michael Chaney and Rob Scott. (ABC News: Graeme Powell)

Perth-based conglomerate Wesfarmers has announced its industrials chief Rob Scott will take over from long-standing managing director Richard Goyder at the end of the year.

Mr Scott, 47, will become the company's deputy chief executive immediately, and will move into the top job in November.

He has worked for Wesfarmers for more than 13 years and is currently the managing director of the company's industrials division, a role he will continue in until July 1.

Wesfarmers chairman Michael Chaney said Mr Scott, who won a silver medal in rowing at the 1996 Atlanta Olympics, was taking the helm at an exciting time as the company expanded its Bunnings hardware store model into the United Kingdom.

Mr Scott said he was honoured the company chose to promote an internal candidate for the top job.

"I feel very humble today and incredibly excited about this fantastic opportunity," he said.

"It's also a very big responsibility to lead a company with over half a million shareholders, 230,000 employees operating in hundreds of communities around Australia and internationally."

Former MD defends lower returns

Mr Chaney defended Mr Goyder's tenure in terms of shareholder returns.

He admitted Wesfarmers' return on equity (ROE) was in the mid 20s when he was chief executive, before the purchase of the Coles supermarket chain, but said those figures were rare.

"Those ROEs were helped a lot by rising coal prices," he said.

"At the time Wesfarmers took over Coles people criticised it for paying a lot of money and lowering the ROE down into single digits.

"Since then through the efforts of Richard [Goyder] and his team the ROE has risen to double digits and if you think now what the group would be like without the Coles acquisition it would be an absolute shadow because of the downturn in some other businesses.

"I think the message from it is that if you stick to your disciplines and really focus on running the business well and getting those returns you will have some cyclicality, but eventually you will be out-performing."

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