Diamond miner Petra Diamonds is implementing a series of changes to streamline and enhance the efficiency of its board in 2024.
Upon the implementation of these changes, Petra’s board will shrink from eight to seven directors, down from ten directors just before the company’s annual general meeting in November.
Petra emphasizes that these adjustments, though modest, are integral to the ongoing cost-saving initiatives being executed across the group. They aim to provide increased flexibility in response to prevailing market conditions and are a response to feedback from shareholders.
Moreover, the reduction in the board size, the amalgamation of the sustainability and health and safety committees, and a fee reduction applicable to the chairperson and non-executive director (NED) positions will collectively result in a minimum 25% reduction in Petra’s board fees on an annualized basis.
As part of these changes, Jon Dudas, an independent NED, will step down from the board and his roles in the company’s audit and risk, remuneration, nomination, and investment committees, effective February 17, 2024. However, he will take on the role of board advisor for six months until August 17, 2024.
Simultaneously, Alex Watson, a non-independent NED, will resign from the board and her positions in the sustainability and investment committees, effective February 17, 2024. She will transition to the role of board observer from that date.
To further strengthen the board, José Manuel Vargas has been appointed as a non-independent NED of Petra, effective January 1, 2024. Vargas is a significant shareholder, holding 8.57% of Petra’s issued share capital.
Starting the New Year, Petra will consolidate its safety, health, and sustainability committees into a single committee, chaired by Lerato Molebatsi, the current sustainability committee chairperson. This merger aims to enhance board efficiency and reduce chair fees without compromising the focus on health and safety matters at Petra.
The newly merged committee will include Molebatsi, Varda Shine (board chair), Richard Duffy (CEO), and Bernie Pryor (current health and safety committee chair).
Looking ahead, the remuneration committee will be chaired by Pryor, with Varda stepping down from this role, effective January 1, 2024.
As part of the adjustments to chairperson and NED fees, Petra announces a 5% reduction in all chair and NED fees, effective January 1, 2024. The exception is the sustainability, health, and safety committee chair fee, which will slightly increase to align with the audit and risk and remuneration committee chair fees, reflecting the heightened responsibilities of the safety, health, and sustainability committee.
Varda Shine, commenting on the changes, expresses confidence that the announced adjustments will result in a more cost-effective, efficient, and appropriately sized board with a balanced mix of skills and experience.
