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To many people, Bill Doyle is Potash Corp. of Saskatchewan Inc.
His bombastic personality and eternally optimistic outlook played a key role in bringing the sleepy fertilizer industry to the attention of investors. His oligopolistic practices were a model for the sector. His strategy and vision never wavered, even when BHP Billiton Ltd. came knocking with a $40-billion offer. And his 15-year tenure as chief executive is the longest of anyone among Canada’s 30 most valuable publicly-traded companies.
It is simply impossible to think of Potash Corp. and not think of Mr. Doyle. The 64-year-old is a rock star within the fertilizer business, a friend or a frenemy of absolutely everyone, be they customers, investors or rival producers. They all have stories to tell about Bill Doyle, the industry’s quintessential promoter and senior statesman.
Yet despite all of Mr. Doyle’s success, Potash Corp. has gone in a very different direction with his replacement. Indeed, the company has hired someone who is his opposite in almost every way. Jochen Tilk is a disciplined, conservative executive known for his strong operational skills. Unlike Mr. Doyle, he has avoided the limelight and has never spouted conspiracy theories on investor conference calls.
He lacks Mr. Doyle’s natural charisma and promotional skills, but he has a much deeper technical background and is well respected in the investment community.
Experts said that he could be just what Potash Corp. needs, at least in the short term.
The industry is struggling right now due to excess supply and several years of lackluster demand. Prices have been in a downward trend for two years, and the break-up of a Russian marketing alliance has heightened market uncertainty. Potash Corp. itself had to cut more than 1,000 jobs last year to stay competitive.
Mr. Doyle was always strongest when looking at the big picture: he would point out that a growing population requires more food, which requires more fertilizer over the long term. But in a challenging market, it is logical to have a CEO with a strong operational background who can zero in on cost reductions.
“Jochen is very experienced on the mining side, and that’s what [Potash Corp.] needs right now. I don’t think they’re going to be too aggressive on M&A or building new mines for quite some time,” said Spencer Churchill, an analyst at Paradigm Capital.
For the rest of this article, click here: http://business.financialpost.com/2014/04/07/potash-corp-takes-dramatic-u-turn-with-new-ceo-hire-jochen-tilk/