Eramet board backs CEO for new term after shareholder tussle (updated)

A&D Holon Holdings

30/03/2021 18:11

(Adds background, comments from spokeswoman)
    PARIS, March 30 (Reuters) - Eramet SA's  ERMT.PA  board on
Tuesday backed a new term for Chief Executive Christel Bories
during which her combined CEO and chairwoman role would be
split, the French mining group said, in a compromise after
tensions between its top shareholders.
    Eramet's board unanimously agreed to propose to the
shareholder meeting in May that Bories be renewed for a second
four-year term, it said in a statement.  urn:newsml:reuters.com:*:nFWN2LS0TY
    Her current combined role of CEO and chair would be
separated before the end of her next term, it said, without
giving precise timing or further details.
    An Eramet spokeswoman added that the governance changes
would occur "over the longer term".
    Bories' future had been cast into doubt when it emerged 
this month that the company's largest shareholder, the Duval
family, had written to state shareholding body APE, Eramet's
second-largest shareholder, to suggest replacing her.
    APE, which is tied to the Duvals in a shareholder pact,
rejected the idea. Like investors and staff, it supports Bories'
record in shifting Eramet towards minerals for electric vehicles
and reviewing struggling activities including alloys maker
Aubert & Duval (A&D).  urn:newsml:reuters.com:*:nL5N2L269S 
    Sources have said the Duvals are notably unhappy with
Bories' handling of A&D, the family's historic business, at
which the CEO led an audit into quality control before putting
the business up for sale following an aviation slump during the
coronavirus pandemic.  urn:newsml:reuters.com:*:nL8N2KN3CG
    In a rare statement, the Duvals said this month that they
supported management strategy, including steps to find a buyer
for A&D, and it was normal to review governance at the end of a
mandate.  urn:newsml:reuters.com:*:nL8N2L85CG
    Eramet's board also nominated Francois Corbin, already an
independent director, to a new role of lead director.
    The role of Corbin, an executive at French tyre maker
Michelin  MICP.PA  and like Bories a past manager at erstwhile
French aluminium group Pechiney, would be to support the
functioning of the board and was not specifically linked to
governance issues, the spokeswoman added.

 (Reporting by Gus Trompiz
Editing by Alexandra Hudson and David Gregorio)
 ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))