New Potash boss stresses continuity
Investors who tired of Bill Doyle’s bombast will probably appreciate Jochen Tilk.
The new chief executive of Potash Corp. of Saskatchewan Inc. could not be more different from his predecessor.
While Doyle was the ultimate stock promoter, Tilk is a quiet and conservative mine operator. While Doyle rarely got through an interview or conference call without saying something outrageous, Tilk has dodged the limelight his entire career.
What Tilk does know how to do is operate mines as efficiently as possible. That is what Potash Corp. needs at this stage of the cycle, experts said, and that is one of the things he stressed on Tuesday.
“I believe, as most operators believe, there’s always an opportunity to get better,” the 50-year-old said in an interview from Saskatoon.
Tilk, who took over last week upon Doyle’s retirement, is only the third CEO in Potash Corp.’s history. He acknowledged he has very big shoes to fill after Doyle’s wildly successful 15-year run, and he stressed continuity of his predecessor’s long-standing strategies — including the famous price-over-volume strategy — rather than any serious overhaul.
“When you look at the evolution of Potash Corp. from its origins to where it is today, you have to give (Doyle) credit for that. I certainly do,” said Tilk, who was formerly CEO of copper miner Inmet Mining Corp.
Nonetheless, by hiring an outside executive with no fertilizer industry experience, Potash Corp. is making a significant break from the Doyle era.
Doyle’s message has been consistent for many years: The world’s population is rising, more food will be needed to feed them, and fertilizer demand is only going higher and higher. He was a permanent bull.
Like Doyle, Tilk is a firm believer in the fundamentals of the fertilizer business. But he has an opportunity to forge new relationships with investors that are built on more than the long-term demand thesis.