Phil Green, former chief executive officer of Australian infrastructure specialist Babcock & Brown has resigned as a director of the firm effective last Sunday. A search for a new independent director to fill his role has commenced.
Green, who had served as the CEO and managing director of Babcock & Brown since 2005 and been with the firm for 24 years, stepped down from his post in August after the firm posted a 30 percent decline in its half year net profits to A$175 million ($142.6 million, €99.9 million).
In his place, Michael Larkin, formerly chief financial officer of the firm, was promoted to chief executive officer. In his place, John Fanning, formerly the chief investment of Babcock and Brown Capital, an Australian Stock Exchange-listed satellite fund managed by Babcock, took over as CFO.
Green, meanwhile, became a non-executive director on Babcock’s board, where he had served for less than a month prior to his departure.
“Phil has decided that the transition from chief executive and managing director to a director role was a difficult move for him to make and not in the best interests of the Company from a corporate governance perspective or his own personal position. He has therefore chosen to resign from the board,” Elizabeth Nosworthy, chairman of Babcock’s board, said in a statement.
The management changes come amid a larger strategic review at the troubled funds manager, which has seen its stock plummet 96 percent year to date. The firm has previously said it plans to gradually wind down its corporate and structured finance division, review management and ownership of several of its publicly listed funds and refocus on its core businesses of infrastructure, real estate and operating leasing.
Shares of Babcock & Brown finished down 7.6 percent in yeserday’s trading, closing at A$1.58.