A willingness to speak out
Rob Campbell is highly respected for his thoughtleadership and advocacy on governance matters. His willingess to speak freely on issues, such as advising directors to take a more hands on approach, has been a real asset to the business community.
But, said the Deloitte Top 200 judges, it is the track record of financial results in the companies he chairs over a lengthy periods, which marks Campbell out as the winner of the 2017 QBE Insurance Chairperson of the Year.
“There is a clear link between his chairmanship style and the performance of those companies,” said judge Dame Alison Paterson.
His 30-plus years of governance and investment experience has been invaluable in his chairmanships — such as at Guinness Peat Group. Campbell became chairman of the GPG holding company in 2011 and oversaw the disposal of various investment assets, with the group’s focus transitioning to their investment in Coats, the world’s largest manufacturer and distributor of sewing thread and supplies.
The role the experienced chairman played at GPG was also noted by the Deloitte Top 200 judges as an example of Campbell’s willingness to take on challenging companies that are in tough spaces.
More recently, Campbell has overseen the successful listing of retirement village operator Summerset Group, and, has guided Tourism Holdings Limited (THL) on its global growth strategy.
Since Campbell became chairman of Tourism Holdings in August 2013 it has achieved a substantial uptick in financial performance.
In the half-year to 31 December 2016, Tourism Holdings posted EBIT (earnings before interest and taxation) of $18.7 million.
This compared with $7.2m for the half-year to December 2013.
Over the course of his chairman- ship, the market has observed a clear change in strategy, and “could see Rob’s fingerprints on it,” said the judges.
THL’s progress since Campbell’s appointment was considered particularly impressive by multiple market analysts, who commented that it is often hard to see the chair’s contribution to company performance: “But with THL, Rob has had a significant impact, which we could see,” explained Dame Alison.
“An outstanding chairman is one who understands the industry, has a clear strategic view and establishes a strong and constructive relationship with his CEOs to deliver outstanding returns to shareholders,” Dame Alison added.
“Rob Campbell has demonstrated this with Tourism Holdings, which has an annualised five-year return of 63 per cent.”
A tangible example of Campbell’s influence is Tourism Holdings’ contribution to a tourism infrastructure funding report to the Minister for Tourism in December 2016.
The report, developed alongside Air New Zealand, Auckland Airport, and Christchurch Airport, proposed the creation of a $130 million annual fund to address tourism infrastructure challenges, funded by a National Tourism Infrastructure Levy alongside an equal contribution from the Government.
“He has positioned Tourism Holdings as a leader in the tourism industry which, in 2016, overtook dairy as the highest contributor to New Zealand’s GDP,” Dame Alison said.
August 2017 saw a prediction that earnings per share for Tourism Holdings would grow by 49.34 per cent over the next three years.
Campbell is set to become chair of SkyCity on January 1, 2018, succeeding the 2016 Deloitte Top 200 Chairperson of the Year, Chris Moller.
Campbell was described as a chairman who maintains close working relationships — characterised by sustained and regular contact — with the chief executives of the companies he governs.
In an interview for the Herald’s Mood of the Boardroom election survey, Campbell spoke frankly about inequality.
“The people who are at the wrong end of inequality really have genuine social and financial needs that are not being met under the current system,” he said in a video interview.
“There is an increasing recognition among the business community and the wider community that things have got a little stale.
“If I can use a word from a previous National Prime Minister, maybe we need to be a bit more aspirational.”
When awarding Campbell its Beacon Award, the NZ Shareholders Association said he had a willingness to speak out on issues “without fear or favour”, citing his comments advising directors not be tick-box governors, manage the managers, and, criticising the limited imagination of some boards and a disconnect between reality and how bankers and other finance professionals are remunerated.