The Board of Australian Vintage Limited (ASX: $AVG) has appointed Craig Garvin as Chief Executive Officer effective from Monday, 14 October 2024.
In May this year, the AVL Board terminated Garvin’s contract for “engaging in conduct that, in its view, displayed a lack of judgement and was inconsistent with the values of the company”, and that Garvin’s conduct was not in line with the “high standards expected of [the] Chief Executive Officer”.
AVG Chairman James Williamson told the AFR he had no issue with rehiring Garvin.
“We have looked at it as a board with a fresh set of eyes,” he said. “People are happy that we can close this chapter.”
A release on the AVG site quotes Williamson as saying: "The new Board of Australian Vintage is pleased to welcome Craig back to AVG. His appointment follows an external search that considered a number of exceptional candidates. After a thorough review of the circumstances and processes surrounding his departure from Australian Vintage in May, the Board felt it was important for Craig to be involved in the search process.”
“Craig’s track record at AVG, his leadership style and deep understanding of our industry and our partners make him the right person to lead the company. He is a respected and well-liked leader who successfully led the change at AVG in a challenging environment. This included the development and implementation of the company’s five-year strategic plan, which transformed the company into a consumer-led business with a commitment to innovation.
“His appointment, after a difficult period for the company, highlights the Board’s laser-like focus on restoring shareholder value.
“Craig’s appointment positions us to strengthen the company and take advantage of opportunities in Australia and international markets,” Williamson said.
Garvin was CEO of Australian Vintage from November 2019 to May 2024. Prior to that, he was CEO of leading dairy manufacturer Parmalat for nearly a decade.
Commenting on Gavin’s appointment, Chair of the Board’s People, Remuneration and Nomination Committee, Margaret Zabel, said: “Craig has demonstrated his ability to create an effective high-performing team, build a strong culture, and develop enduring relationships with customers and other stakeholders.
“He is the right person to take Australian Vintage forward, and we are looking forward to working with him to create value for our shareholders to deliver great wine brands to our customers,” Zabel said.
Garvin will receive a Fixed Annual Remuneration of $600,000. A Long-Term Incentive Plan (LTIP) is included in the contract, consisting of a one-off grant of 5,000,000 options at a strike price of $0.20, vesting in 3 years. This equity-based remuneration reportedly aligns Garvin’s interests with shareholders, supporting long-term value creation and the sustained growth of the Company. AVG said this incentive will be in accordance with the AVG Performance Rights and Options Plan Rules.