James Hardie (ASX:JHX)
has terminated the employment of its chief executive Jack Truong effective immediately after employees raised concerns about his work-related interactions.
Mr Truong first joined as chief executive in February 2019 and has driven the transformation into “A New James Hardie” over the past three years.
However, in the period, Mr Truong’s conduct came under scrutiny after employees raised concerns about his work-related interactions.
The Board undertook extensive due diligence which included retaining outside counsel and a third party consultant. The board also provided opportunities and support for sincere change in Mr Truong’s behaviour.
However it said based on additional employee complaints, it had concluded, based on independent third-party consultant surveys and analysis, direct input from various executives, and additional information that Mr Truong’s conduct, while not discriminatory, extensively and materially breached the James Hardie Code of Conduct.
Per the terms of Mr Truong’s contract, his on-foot incentives, including unvested long term incentives will lapse and will only receive statutory entitlements.
Harold Wiens has been appointed interim chief executive and Michael Hammes has been appointed to the role of executive chairman, while the search for a replacement is underway.
Shares in James Hardie (ASX:JHX)
are trading 5.1 per cent lower at $51.04.