LafargeHolcim CEO to leave in July 2017
Eric Olsen announces resignation as board of directors concludes independent Syria review
ERIC Olsen, chief executive officer of LafargeHolcim, has today announced his resignation and will leave the Group on 15 July 2017, two years after taking up the CEO role and assuming responsibility for the successful implementation of the merger of Lafarge and Holcim.
His resignation coincides with the conclusion of an independent internal investigation, commissioned by the board of directors, into allegations concerning the Lafarge cement plant in Syria: specifically that company personnel had engaged in dealings with armed groups and sanctioned parties during 2013 until the plant closed in September 2014.
The cement plant, which took almost three years to build at a cost of approximately US$680 million, commenced production in May 2010. Almost from its opening, the political situation in Syria deteriorated rapidly, posing very difficult challenges for the security and operation of the plant and its employees.
Different armed political factions controlled or sought to control the areas around the plant at different times, and conditions became increasingly difficult in 2014, resulting in the evacuation of the plant in September that year. LafargeHolcim have not attempted to operate on site since that time.
The subsequent internal investigation confirmed that a number of measures taken to continue safe operations at the Syrian plant were unacceptable, and that significant errors of judgement were made that contravened the company’s code of conduct.
The findings also confirmed that although local and regional management instigated these measures, selected members of Group management were aware of circumstances indicating that violations of Lafarge’s established standards of business conduct had taken place.
Beat Hess, chairman of the board of LafargeHolcim, said: ‘Although I appreciate that those responsible for the Syrian operations appear to have acted in a manner they believed was in the best interests of the company and its employees, there can be no compromise when it comes to compliance rules and adherence to the standards set out in the company’s code of conduct, no matter what the operational challenges are. We are absolutely committed to ensuring that events like those that occurred in Syria must never happen again at LafargeHolcim.’
As part of the investigation and given his current role as CEO of LafargeHolcim, the role and potential implication of Eric Olsen has been a point of attention. However, following an in-depth review, the board concluded that Mr Olsen was not responsible for, nor thought to be aware of, any wrongdoings that have been identified as part of its review.
In a statement issued today, Mr Olsen (pictured) said his decision to resign had been driven by his conviction that it would contribute to addressing strong tensions that have recently arisen around the Syria case. ‘While I was absolutely not involved in, nor even aware of, any wrongdoing, I believe my departure will contribute to bringing back serenity to a company that has been exposed for months on this case,’ he commented.
A search for Mr Olsen’s successor will be launched immediately, with chairman of the board Beat Hess overseeing the transition period until the appointment of the new Group CEO. When Mr Olsen leaves on 15 July, Mr Hess will become interim CEO and Roland Köhler, currently executive committee member with responsibility for Europe, Australia/New Zealand and trading, will be appointed chief operating officer.
