Michael Clarke, CEO of Australia’s Treasury Wine Estates (TWE), has announced that he will be retiring in 2021, a shock announcement that wiped AUD$1.5 billion ($1.01 bn) from the company’s market value on Monday.
The announcement was made by webcast.
“Michael has informed the TWE board of his intention to retire,” said Chairman Paul Rayner, adding that Tim Ford, the current COO, will become the new CEO.
Clarke has been CEO of TWE for the past five and a half years, a period in which the company has grown from an underperforming wine business to a stock market darling. It’s had a series of notable successes, from leading Australia’s wine exports in China, to launching innovative new products, such as the 19 Crimes range, with their augmented reality labels.
“Without question, the extraordinary transformation and outstanding financial returns that TWE has achieved, have been driven by Michael’s leadership over the past five and a half years,” said Rayner. “The structural changes and initiatives delivered by Michael and his team have established TWE as a significantly stronger business than when he first joined the company.”
Clarke will stay on for an extra year as an adviser, to advise on mergers and acquisition. The Australian Financial Review speculated that Ste Michelle and Constellation Brands may be the targets of takeover deals.
Born and educated in South Africa, Clarke has previously worked for Coca Cola and Premier Foods. His parents are in poor health and he wants to move back to the UK to be with them.
Tim Ford, his successor, joined TWE in March 2011.
