The post-Kerridge era
The man who stepped into Kerridge’s shoes was Patrick Egan, a non-exec-
utive director of the company since 1985. Egan was immediately appointed
executive chairman by his fellow directors. Currently a main board member
of Unilever NV, with responsibility for Latin America, South Africa and
central Asia, he was due to retire from the post in May 1992. He would
juggle both posts in the meantime. The search for a new chief
executive was already underway, and Egan stressed that both internal
and external candidates would be considered for the post. Once a new chief
The referral and influence market domains 281
From Mr R. C. Johnston.
Sir, Fisons’ recent revelations about its difficulties in complying with the new US Food
and Drug Administration manufacturing requirements seems to demonstrate once
again the board’s failure to manage effectively both its business and its investor rela-
tions.
The City’s reaction to the bombshells has been clearly reflected in the dramatic fall
in share price.
As an institutional shareholder in Fisons, my concern at the mishandling of the
group’s corporate relations is not just confined to the failures of the last few weeks.
For some considerable time I have been anxious over Fisons’ attitude towards peat
extraction from sites of scientific interest and have been involved in lengthy and pro-
tracted correspondence with the company over the issue.
Despite leading retailers such as Do-It-All, Texas Homecare, B & Q, and Sainsbury’s
Homebase agreeing not to sell products dug from environmentally sensitive sites, the
company’s director of corporate affairs stated that relations between Fisons and its big
customers were an operational matter and not a matter for comment to shareholders.
Earlier in the year, you will recall, Fisons had been represented on the
Confederation of British Industry working party looking at communications with
small shareholders.
Presumably, the board of Fisons considers that its appalling track record over
Opticrom and Imferon and the FDA is an operational matter as well and, therefore,
not of importance to shareholders either.
One leading stockbroker said recently that the company is clearly like a patient on
a stretcher at the moment. I prefer to think of it as a board whose members are
sinking slowly up to their necks in a deep peat bog.
Whether they can dig themselves out of the mire in time for the annual general
meeting is another matter and one that I would urge every single shareholder in
Fisons to give very serious thought to.
R. C. Johnston, P.O. Box 37, Regent Street, Barnsley, South Yorkshire S70 2PQFigure 4.2.1 Institutional shareholder takes issue with Fisons’ investor
relations.
Source:Financial Times, 6 December 1992. Reproduced with permission.