Reuters — Canada’s Nutrien, the world’s biggest fertilizer producer by capacity, surprised investors by replacing its chief executive on Tuesday for the second time in eight months, even as the company rakes in strong profits.
Nutrien said in a statement it named Ken Seitz, the head of its potash business, as interim chief executive after Mayo Schmidt stepped down as CEO. The company gave no reason for Schmidt’s departure and spokesperson Megan Fielding said there are “legal constraints” on what Nutrien can say about it.
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Fielding said the leadership change will not affect Nutrien’s strategy.
“It’s mighty perplexing to me,” said Brian Madden, senior vice-president at Goodreid Investment Counsel, a Nutrien shareholder. “Feels like lightning striking twice in the same place to see two peculiar, abrupt transitions within a year.”
Soaring prices of potash fertilizer, due to rising demand and supply problems for Nutrien competitors, have put a charge into the company’s profits. Its third-quarter net income was the highest for that period in the company’s four-year history, since forming from Agrium’s acquisition of PotashCorp.
Under Schmidt and Seitz, Nutrien boosted potash sales and was examining restarting idled mine capacity to raise production further to capitalize on high prices.
Nutrien’s U.S.-listed shares dropped 3.8 per cent. The change raised investor questions about senior leadership dysfunction and strategy at the company, said Scotiabank analyst Ben Isaacson.
Nutrien’s board is chaired by Russ Girling, a former CEO at pipeline company TC Energy, and also includes former Barrick Gold CEO Aaron Regent.
Schmidt, Nutrien’s former chairman, took the CEO job in April, replacing Chuck Magro. Schmidt, whose resume also includes stints as CEO at grain firm Viterra and Ontario power utility Hydro One, did not respond to requests for comment.
Seitz joined Nutrien as executive vice-president in charge of potash operations in 2019. He previously led Canpotex, a potash export company owned by Nutrien and Mosaic Co.
Girling, in Nutrien’s release, said the board will now “begin a global search to select a long-term leader that will take the company into its next phase, which will consider internal and external candidates.”
— Reporting for Reuters by Rithika Krishna in Bangalore and Rod Nickel in Winnipeg.
