Spar chair Mike Bosman will act in an executive role for three months while the food and liquor retailer searches for a CEO after Brett Botten stands down this week.
An executive chair has a more hands-on role and is usually paid a salary by the company.
While questions have been raised by fund managers about there being someone qualified to take over as CEO, Spar says it is confident it can find someone appropriate in three months. It said discussions are being held with internal and external candidates.
Bosman told Business Day: “In terms of the [Spar] memorandum of incorporation, we have to fill the CEO role within three months. With a bit of luck we will get it done a lot quicker than that.”
Botten, a chartered accountant, agreed to stand down as CEO earlier this month after being linked to two fictitious loans of negligible value that breached accounting standards.
The loans were detailed in a report that addressed concerns by black franchisees whose businesses had failed, and alleged discrimination by Spar. The report found in favour of some complaints, but dismissed complaints of discrimination against the retailers after finding no such evidence.
Bosman is also chair of restaurant franchise Spur, as well as a nonexecutive director on the boards of MTN and food and consumer group AVI. He is also on the board of indebted tech group EOH.
He said he would manage in his temporary role due to the support from the Spar executive team.
“We have got three experienced CEOs; one for SA, one for south west England and Ireland and one for Poland and Switzerland. They are very good operators.
“Spar [also] has a strong strategy director who leads the guild, as well as a strong CFO,” he said.
The guild is the membership body for the independent retailers that buy goods from Spar.
Bosman said the board had considered appointing one of the executive team members as the interim CEO [but] they were “each carrying an incredible load, so it would be unfair to expect that of them in the short term.
“Instead, we decided to rather throw in an extra pair of hands with a fresh view of issues.”
Bosman, an advertising entrepreneur, is a keen pilot of helicopters and jets.
Asked if he was on too many boards, Bosman said he operated better when he was busy.
“I am very fortunate that Spar has a September year-end. All of the boards I am on have June or December year-ends. As a nonexecutive director one has quieter patches. This assignment is conveniently out of sync with others.”
He may readjust one of his appointments, he said.
“My [chair] appointment was totally unexpected. You can expect an adjustment of my nonexecutive director portfolio. There is one board I have been on for quite a long time and should be retiring from.”
Bosman said he felt up to the challenge, adding that an individual’s ability to manage multiple appointments depended on their fitness and capability.
“One person can be in a single nonexecutive director role and not be particularly effective. There are people on eight boards who do an incredible job. It depends on the individual and their energy levels.”
Spar is also introducing a board chair committee to interact regularly with Bosman to ensure continued high standards of governance, it said.
Spar also has been in lengthy legal battles with its largest franchiser, the Giannacopoulos Group, which has lodged a R2.1.bn claim.
Bosman previously told Financial Mail the legal fight should never have reached the stage of such a high claim. “We’re going to focus on sorting out this dispute as a priority. Everyone has disputes, but it needn’t have got to this. And it emphasises that we need to work extremely hard to earn back the respect from our retailers.”
Regarding the questionable loans, including one reported to the Independent Regulatory Board for Auditors, Bosman told Business Day: “We are not talking about billions stolen. What we are talking about is three mistakes totalling R11m that happened five years ago. There was no fraud committed.
“But we have moved on from that.”
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