It has been a short but wild ride for Arrium chairman Jerry Maycock

Jerry Charles Roy Maycock has had a rather eventful 16 months since taking over from Peter Smedley as chairman of steel merchant, Arrium.​
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He probably twigged to the fact it might be a bit of a wild ride in September 2014 when Smedley, his then chairman, announced a highly dilutive $754 million capital-raising at 48¢ a share.

Maycock celebrated after joining the board just weeks earlier by acquiring 250,000 shares at 76.4c each. Welcome aboard Jerry.

His fellow investors were not impressed either, they sent the stock to a low of 40c and left Arrium’s underwriter, UBS, holding the can on a lot of stock that investors refused to touch.

It was not the only area where he was shaded by his predecessor, Smedley.

As Maycock told his rather disgruntled investors at last year’s AGM, which marked his first anniversary in the chair, he took a 14 per cent pay cut compared to Smedley’s $495,000 annual fee.

And it is safe to assume that even this reduced pay will not be lasting much longer.

Not that Maycock appeared to be envisioning such a scenario when addressing Arrium’s shareholder meeting last November.

“I believe the company has responded appropriately and with speed to the changed external environment, and I expect the benefits of this to be reflected in the 2016 financial year,” said Maycock.

But to be fair, as Maycock said to his fellow investors, prior to his appointment as a director in August 2014 “it was widely regarded that the iron ore prices would not fall below $US100 a tonne on a sustained basis.”

Not even our local banks, owed $1 billion between them, entertained the prospect of iron ore prices at less than half that level.

This is why they did not secure the loans they gave Arrium and will be in a world of pain when this little fiasco reaches a conclusion. Bradken who?

Speaking of Arrium.

ASX-listed engineer, Bradken, has enough on its plate without being dragged into other people’s messes.

So you can understand why the loss-making group, which has watched its share price plunge thanks to its exposure to the mining downturn, was keen to advise its “customers, suppliers and shareholders that it has no affiliation or association with the company Bradken Consolidated Pty Ltd, which has been identified as an associate entity of Arrium Ltd.”

Arrium’s administrators returned the favour by confirming the Bradken announcement some hours later.

Bradken has just finished a cleanout of its executive suite, with chairman – The Hon. Nicholas Frank Hugo Greiner, AC stepping down after last year’s AGM which recorded a first strike against its remuneration report.

The company’s CEO, Brian Hodges, stepped down in December.  Reno Nine

We are told that fortune favours the brave, so let’s hope that CSR chief financial officer, Greg Barnes, gets his just rewards as he swaps the building products group, with a market cap of $1.6 billion, for the sub-$1 billion Nine Entertainment.

In building parlance, Nine is definitely in fixer-upper territory, having listed not much more than two years ago with a market value of $1.9 billion.

Did seven years of consecutive earnings growth from the building boom grow a little boring for our bean counter, or can we take his departure as a sign that the best is behind our building stocks?

Barnes’ July start date means that Nine will have gone four months without a permanent CFO.

It is a blessing for Nine’s former head number cruncher, Simon Kelly, who departed last month, not at the end of May as first announced, and had the good fortune to avoid a second shock earnings downgrade in less than a year.

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This story Administrator ready to work first appeared on Nanjing Night Net.