Today (Friday 22nd), three independent members of Leighton`s board have tendered their resignation on the basis that there has been a breakdown in relations with the major shareholder HOCHTIEF.
We regret this decision. With regard to the substantive reasons we have a different view: The cooperation of HOCHTIEF and Leighton has always been a success story throughout the last decades. Both companies have worked on the basis of informal governance principles which we lived over the last years. HOCHTIEF has at no time given the Leighton independent directors any cause to believe that it intends to depart from these principles.
HOCHTIEF never tried to undermine the independence of the Board or to interfere in the appointment process for a new independent director. In general we suggested that the Board would benefit from an additional set of skills. We therefore were concerned by a proposal from independent directors for a replacement of the current principles. The new scheme would have restricted the right of HOCHTIEF.
HOCHTIEF is committed to Leighton’s strategic objectives and totally supports the CEO and his management team. HOCHTIEF regards a good working relationship between management and the Board as fundamental to the success of Leighton‘s business.
We assume that as soon as possible a new independent Chairman and two independent directors are appointed.