Lucky Star owner Oceana Group is grappling with a scarcity of critical skills and succession planning challenges, as the group’s approach to leadership transition contrasts with that of its peers, raising questions about governance practices and talent sustainability in the highly regulated fishing industry.
According to the group’s annual report, it has an insufficient pipeline of skills to support existing operations or lead new business opportunities, as well as difficulties in replacing retiring personnel. This shortage of talent is compounded by the fishing industry’s broader struggle to attract, develop and retain top professionals in a highly regulated and competitive environment.
The effects of these challenges are far-reaching. Oceana said it risked being unable to sustain its current business model and execute its growth strategy. This talent scarcity also threatens the group’s ability to meet employment equity targets and fill critical leadership positions, posing a direct threat to its long-term success.
Succession planning for the CEO position is also a cause for concern. Neville Brink, who became acting CEO in 2022 after the sudden resignation of Imraan Soomra, was later confirmed as CEO. Though Oceana’s policy mandates executive directors to retire at the age of 63, Brink, now 64 years old, has had his contract extended twice. He is set to resume a new term in January until 2026.
Despite these challenges, Oceana sees an opportunity to turn the situation into an advantage by fostering innovation through targeted investments in employee development and education. As part of its risk mitigation strategies, the group said it has implemented policies on talent management, remuneration and succession planning, as well as leadership and management advancement programmes aimed at building a strong talent pipeline.
Oceana also faces succession challenges within its board of non-executive directors, as most are nearing the retirement age of 70, including chair Mustak Brey who is now 70. The group said it was facing difficulties in finding experienced leaders with expertise in fishing, fast-moving consumer goods and its diverse operating regions.
To address this, the board has extended the maximum tenure for non-executive directors to 12 years, exceeding the nine-year guideline under King IV, to ensure continuity and preserve institutional knowledge while they search for suitable replacements, Oceana said.
“With several of our board members approaching 70 years in age and in line with our agreed board rotation process, we have a succession plan in place that we will be phasing in over the coming years. We will be doing so in a manner that does not undermine the significant skills and deep company experience within our current board,” Brey said.
This practice, however, contrasts with governance practices when compared to JSE peers. Astral Foods recently announced that its COO, Gary Arnold, will succeed outgoing CEO Chris Schutte in February 2025, following a seamless transition plan.
Astral’s policy mandates executive retirement at 65, and Schutte, a 40-year veteran of the poultry industry, is stepping down in line with this rule.
The shortage of critical skills is not the only issue Oceana faces. The group operates in an industry with stringent regulatory requirements where failure to comply with changing legislation could lead to fines, reputational damage or even the loss of valuable fishing rights, it said.
To address this, Oceana has established robust compliance systems, including a three-tiered assurance model and ongoing engagement with regulators. These measures are designed to enhance the group’s reputation as a well-governed corporate entity and protect its fishing rights.
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