A number of key executives have parted ways with both Fortescue Metals Group (ASX:FMG) and Andrew Forrest’s privately-held business, Tattarang. The string of departures has sparked questions about the strategic alignment and stability within the Forrest business empire.
A wave of departures
Last week, Fortescue chief executive Fiona Hick left the iron ore giant after just six months in the job. She was, according to Forrest, “not sufficiently aligned with Fortescue’s decarbonisation agenda”.
Not long after Hick’s departure, Christine Morris, the chief financial officer, also exited after a two-month tenure. The departures marked the 10th and 11th top executives to leave Fortescue within three years.
Adding to the tally, former Reserve Bank deputy chairman Guy Debelle resigned from the Fortescue Future Industries board last Friday. Similarly, Joost Heymeijer, CEO of Z1Z, Forrest’s hospitality and lifestyle arm, also announced his departure.
In a separate development, Gabrielle Iwanow, the boss of Mincor Resources, is set to leave Wyloo Metals, a Tattarang-owned entity, later this month following Wyloo's A$760 million acquisition of Mincor.
Shareholders mixed views on green tilt
This succession of executive departures coincides with Forrest's own public declaration of a shift in business focus, notably emphasising clean energy.
Forrest — who recently warned against coal and oil, saying "lethal humidity will be the next global pandemic" at a not-to-be-missed speech at the Boao Forum in Perth — appears to be reorienting his businesses.
While some investors back the company's strong core, others express concerns. Australian Shareholders Association chief executive Rachel Waterhouse said, "Three departures in a week is quite significant. The retail investors are concerned around the change of leadership and really would want to understand more, particularly around talent retention."
A time of change
Simultaneously, Forrest and his wife Nicola have confirmed their separation after 31 years, although they maintain that they remain strategically aligned regarding Fortescue, Tattarang and their philanthropic Minderoo Foundation.
John Hartman, CEO of Minderoo, has indicated a narrowed focus on core investments in critical minerals, renewable energy and protein.
The departures suggest a potentially turbulent period for Forrest’s businesses at a time when the billionaire himself appears committed to a revamped focus on environmental sustainability. With shareholders divided and leadership in flux, only time will tell how these changes will impact the future of Forrest's expansive empire.