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- James Hardie Industries (JHX) terminates the employment of its CEO, Jack Truong, effective immediately
- The move followed employees raising concerns about the CEO’s work-related interactions over his three-year stint in the role, which the board agreed breached its code of conduct
- Following the termination, Harold Wiens has agreed to take the reins as Interim Chief Executive Officer
- The company has raised its guidance for fiscal year 2022 to be between US$605 million and US$625 million (around A$844 million and $872 million)
- Company shares were 4.6 percent lower at $51.26 at 1045 AEDT
James Hardie Industries (JHX) has terminated the employment of its CEO Jack Truong, effective immediately.
The move followed employees raising concerns about the CEO’s work-related interactions over his three-year stint in the role.
The company said it undertook extensive due diligence, including outside counsel, and provided opportunities and support for a change in Mr Truong’s behaviour.
However, based on additional employee complaints, independent third-party consultant surveys and analysis, input from executives, and additional information the board concluded Mr Truong’s conduct extensively and materially breached the James Hardie code of conduct.
The board explained the decision was made to uphold its core values, which include operating with respect.
Following the termination, Harold Wiens agreed to take the reins as Interim Chief Executive Officer.
Mr Wiens joined the James Hardie Industries board in May 2020 as an independent non-executive director, following a career that saw him lead businesses for the 3M Company in the United States, Asia and Europe.
He will receive a temporary exertion fee of US$130,000 (approximately A$181,500) per month while he holds the role.
“Harold is well placed to step into the role, and lead James Hardie as the Board conducts a global search for a permanent CEO,” said Chairman Michael Hammes.
“He is an individual of outstanding integrity who demonstrates great passion for our company, and importantly its people and our core values, including operating with respect.”
Mr Hammes has been appointed to the role of Executive Chairman while the CEO succession is undertaken. He will provide additional leadership and oversight for the executive team and support the Interim CEO.
Meanwhile, the company has raised its guidance for adjusted net income for fiscal year 2022 to be between US$605 million and US$625 million (around A$844 million and $872 million), up from its previous range of US$580 million and US$600 million (A$809 million and $837 million).
Jame Hardie Industries’ search for a new CEO will begin immediately.
Company shares were 4.6 percent lower at $51.26 at 1045 AEDT.
