Tensions rise as Praemium face off approaches

By Kirsten Hastings, 5 Apr 17

Ousted Praemium chief executive Michael Ohanessian’s “aggressive” relationship with the board and his unwillingness to “make necessary changes in his behaviour” are why shareholders should vote against his reinstatement, chairman Greg Camm has said.

Ousted Praemium chief executive Michael Ohanessian’s "aggressive" relationship with the board and his unwillingness to “make necessary changes in his behaviour” are why shareholders should vote against his reinstatement, chairman Greg Camm has said.

Past performance

Andre Carstens, one of the directors Ohanessian is attempting to expel, added that “poor interaction between the non-executive directors and Mr Ohanessian in the boardroom was not conducive to a good business culture within the rest of the organisation”.

“Much has been made in the media about Praemium’s positive earnings growth during Mr Ohanessian’s stewardship,” Carstens added. “In absolute terms, it does look impressive. However, the reality is that competitors have also grown their earnings.

“The correct way, in my opinion, to assess the chief executive officer’s performance is not in absolute terms but rather relative to the performance of its competitors.

“Praemium is now falling behind its competitors in relative share price performance. That is, in my opinion, a more relevant assessment of the chief executive’s performance.”

Carstens added that, Ohanessian may have been the “ideal chief executive officer during the period when the business was struggling”, that is “no longer the case”.