Another high-profile grain industry executive joined Saskatchewan Wheat Pool last week.
Former Canadian Wheat Board commissioner Richard Klassen was named executive vice-president of the food and industrial group on Jan. 25, just a day after Bill Hunt announced he was retiring from that position.
Chief executive officer Mayo Schmidt said Hunt will become a consultant with the company.
Klassen’s appointment raised some questions in grain industry circles regarding his former affiliation with the Canadian Wheat Board and its severance provisions.
Klassen served as a CWB commissioner from 1988 to the end of 1998 and was assistant chief commissioner of the Canadian Grain Commission before that. Since leaving the board a year ago, he has been vice-president of a property management company.
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He is restricted by an agreement with the wheat board not to be directly involved in marketing crops that are under the board. The restriction was for two years. Deanna Allen of the wheat board said the directors have asked their lawyer to review the terms.
Schmidt said Klassen’s skills, reputation and proven track record in international marketing, agricultural processing and strategic planning will serve the pool well.
Klassen is responsible for Heartland Livestock Services, Heartland Pork Management Services, CanGro Processors, CSP Foods, Can-Oat Milling, The Western Producer and the company’s interests in Fletcher’s Fine Foods, CanAmera Foods and Prairie Malt.
Klassen said his first order of business is to familiarize himself with these companies and “determine what the inter-company synergies and dynamics are, in order that this organization can, on behalf of its shareholders, maximize the value of its investment in those companies.”
Providing the best possible return to farmers is also a priority, he told a news conference.
Asked why he would want to join a company that is losing money, Klassen said he sees a bright future ahead. He said he has been an admirer of the pool for a long time and jumped at the opportunity to join.
“Quite frankly, I don’t agree with those people that have the perception that this company is in bad times,” he said. “This company is a very, very sound organization, both … financially and particularly sound in terms of the personnel that are involved in carrying out the day-to-day operations of the organization.”
Schmidt and Klassen have worked together before, in their roles at ConAgra Grain Canada and the wheat board, respectively.
Schmidt said during that time he “developed a great deal of respect for Mr. Klassen’s abilities and strategic thinking.”
Another week, another announcement of changes at the top.
That’s how 2000 began at Saskatchewan Wheat Pool, and the changes may not yet be over.
The Jan. 13 appointment of chief executive officer Mayo Schmidt, to fill the vacancy created when Don Loewen was asked to resign last June, was followed by a number of other administrative changes.
- President Leroy Larsen announced Jan. 20 he will retire April 1.
- Interim CEO Bill Hunt announced Jan. 24 his retirement from the position as executive vice-president of the food and industrial group.
- John Hicke, who was interim vice-president, returned to his role as vice-president of business planning and development.
- Richard Klassen, former Canadian Wheat Board commissioner, took over Hunt’s job Jan. 25.
- Interim executive vice-president of the grain group, Frank Burdzy, continues in this role. He stepped in last June when Bruce Johnson was fired, and it will be up to Schmidt to determine the permanent replacement.
Last week, Schmidt said he doesn’t see these recent events as a signal of radical change.
“I don’t look at it as a changing of the guard in as much as the tradition and the work ethic and things that they have established over the years certainly continue to be represented by the executive group here,” he said, referring to the two retirements.
“And also keep in mind that there are 16 board members on the board of directors. I think it certainly is a point of change in that leadership but there’s no question that the board and the farmers of Saskatchewan certainly are very similar in their thinking.”
Schmidt said the message the pool is sending to members and shareholders is that it is strengthening the organization to deal with the changing business environment. He said the reorganization at the top may not be complete.
“One can’t plan … for retirements,” he said. “We’ve identified a couple areas here where we wanted to make some changes … . I feel strongly that the expertise, the abilities clearly to bring this company to the level of operation it needs to be at, are within the pool.”
