THE BOTTOM LINE
GPI beefs up its boardroom with fast-food veteran
New CEO Moodley has held senior positions internationally at Dunkin’ Donuts and McDonald’s
The boardroom of empowerment company Grand Parade Investments (GPI) is taking on a semblance of normalcy again.
Earlier this year GPI – which owns the master franchise agreements for iconic fast food brands Burger King and Dunkin’ Donuts as well as several Western Cape-based gaming investments – was rocked by a series of key resignations.
In April Tasneem Karriem resigned as CEO – a position she had occupied for less than a year. A few weeks later chief financial officer Shaun Barends also exited the boardroom.This left GPI in the invidious position of having just one executive in the boardroom – executive chairman and major shareholder Hassen Adams, who also doubled up as acting CEO.
But this week’s announcement that Prabashinee Moodley is set to take up the CEO position from next month should go some way to placate worried GPI shareholders. Her appointment follows the recent appointment of Colin Priem as chief financial officer.
But what shareholders will really relish is that Moodley is familiar with the fast food industry – having held senior positions internationally at Dunkin’ Brands and McDonald’s Corporation. The GPI share price responded positively to Moodley’s appointment on Tuesday. But there’s still some way to go before the gaping discount the share price offers on GPI’s intrinsic value closes to more acceptable levels.
With Adams – who has been a dominant force at GPI for around two decades – still retaining executive chairman status, there may still be some conjecture over who is really in charge at the company.
Perhaps it’s now time for Adams to step back and take on a non-executive role?