Parmalat is spread across the world with operations in Oceania, Africa, Europe, South America and North America. The latest results for the financial year ending December 2015 saw revenue rise by US$1 billion, a great result under the current conditions and the complexity of its business.
But amid the good results comes a sign of the problems of diversity in running a company which operates in so many different markets.
Director Antonio Sala, along with fellow director Patrice Gassenbach and chief executive and general manager Yvon Guerin, resigned on the same day as the release of the draft results.
A statement from Sala gave the reason as being “the continuous recurrence of contrasts within the board of directors. In his opinion, these contrasts do not facilitate the board’s activities in the strategic and management areas in which the group is most committed, given the complex situations in the countries and markets in which it operates”.
Because the three resigning directors were nominated by the majority shareholders, this has triggered the need to elect an entirely new board of directors.
I wonder how any boards with operations in various distinct markets would have consensus on every decision made. Diverse boards bring varied skills and sometimes opposing views so the key is to get them all working for the better of the company.
On face value, the topic has seen little dialogue surrounding it. Sala could be commended for identifying the differences within the board if they were limiting the potential of the company. This should be the responsibility of every director on a company.
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