Aryzta, the baked goods conglomerate of Swiss-Irish origins that grappled with shareholder dissension in 2020, has named a permanent CEO, nearly four years in the wake of Kevin Toland’s resignation. Michael Schai, Aryzta’s former managing director for the Asia-Pacific region located in Australia, is set to succeed interim CEO Urs Jordi. However, Jordi will continue as group chairman, the consortium confirmed on Monday.
In 2020, following the withdrawal of former Smurfit Kappa’s chief executive Gary McGann amid shareholder tumult, Jordi ascended to the position of chairman. A partial boardroom insurgency then shifted the group’s central power from Dublin to Zurich, and in November 2020, Jordi was also made interim CEO after Toland’s exit with a payout of CHF 1.77 million (€1.81 million).
The Irish leaders had assumed control of a venture resulting from the fusion of IAWS, famed locally for its Cuisine de France brand, and the Jordi-led Swiss firm Hiestand, under IAWS head Owen Killian. Following a series of underperforming results, US business growth issues, and a massive spree of mergers and acquisitions climaxing in the contentious purchase of a 49% stake in Picard, a French frozen food company, investors started expressing concern.
Over the past few years, both internally and among investors, doubts were raised over Jordi’s enduring dual role. These concerns led to the resignation of two directors from the company last year. On Monday, Aryzta extolled Jordi for guiding the company amid “a spell of substantial financial jeopardy and commercial ambiguity”.
“He steps down from his interim CEO post having put in place a steady experienced leadership team, reenergised the firm’s organic growth and significantly enhanced business performance,” noted Alejandro Legardo, chair of Aryzta’s governance committee.
With his new role to begin in January, Schai previously held several roles at Aryzta from 2015 to 2018, lastly as managing director of its international bun segment in Australia. At present, he works as the CEO of Lindt, a chocolate manufacturer in Australia.
“I am thrilled to be rejoining Aryzta in the capacity of CEO,” he expressed. “I’ve closely observed the successful turnaround amidst a time of numerous internal and external obstacles. This is a testament to the resilience, dedication and zeal of Urs Jordi, the leadership team, the board of directors, and the entire staff.
“I am eager to take over from Mr Jordi and maintain the momentum whilst enhancing value for shareholders.”
In the earlier part of this year, Mr Toland along with three other ex-executives from Aryzta initiated a High Court case against their prior employer, seeking a “specific performance,” as per court documents. This suggests they’re fighting for financial recompense they believe they’re rightfully owed under their contracts.