Cape Town - Mondi Group CEO David Hathorn informed the boards of his decision to retire and Peter Oswald, executive director and CEO of the Europe & International Division, will succeed him on 11 May at the AGM.
"In order to ensure a smooth transition, David and Peter will work together over the next three months and David will stand down as Group CEO and as a director of Mondi ... at the conclusion of the AGM on 11 May 2017, at which time Peter will assume the full responsibility...
"Thereafter David will support Peter as required and continue to work in an executive capacity until his retirement in February 2018," the company said in a statement.
"David has made an immense contribution to the growth and development of Mondi," the joint chairs, David Williams and Fred Phaswana, said.
"David joined the Group in 1991, and has served as CEO since 2000. He was instrumental in the group's international expansion and the development of the high-quality asset base that forms the foundation of the Group today.
"He has led Mondi through major change in this period, most notably in the establishment of Mondi as an independently listed group through the demerger from Anglo American in 2007.
"Since listing in 2007 the market capitalisation of the group has more than quadrupled, with a compound annual return to shareholders of over 18%. The boards are extremely grateful to David for his contribution to the group over the past 26 years of service and wish him all the best in his retirement. We are delighted to have someone of Peter's calibre and experience to succeed David as CEO.
"Peter has been with the group in various roles since joining in 1992, serving as an executive director and CEO of the Europe & International Division since January 2008. Peter is a proven leader with an intimate knowledge of the business, having been involved in the development of much of what comprises the group today.
"We are confident that Peter will offer strong continuity, while bringing his own dynamism to the role. We look forward to David and Peter working together to ensure a smooth transition of leadership."
Commenting on his appointment, Oswald said: "I am honoured to accept the appointment and look forward to working with the boards and the rest of our team in continuing the successful development of the business.
With our clear and consistent strategic focus, robust business model, world class assets, rigorous and disciplined approach to capital allocation, and strong financial position, we are well equipped to serve our growing customer base and deliver the ongoing success of the group for the benefit of all stakeholders."
Hathorn added: "It has been a great privilege to have worked for the Mondi Group over the past 26 years, being involved in its development from a regional business to a truly international group delivering industry leading returns.
It gives me great confidence in the future success of the business to be able to hand over to Peter, who has been alongside me for much of this journey. I wish Peter and the team all the very best."