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CEO Takes Medical Leave at AkzoNobel

Wednesday, September 19, 2012

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AkzoNobel CEO Ton Büchner has “taken on too much work” and is temporarily stepping down from his duties, the company says.

Büchner, 47, who took over April 23 as head of the world’s largest paint and coatings company, is on a medical leave of absence after being diagnosed with “temporary fatigue,” the Dutch company announced in a brief statement Tuesday (Sept. 18).

AkzoNobel

Ton Büchner (left) took over in April from longtime CEO Hans Wijers.

Chief Financial Officer Keith Nichols will assume additional responsibilities in Büchner’s absence.

Antony Burgmans, a member of the Supervisory Board, will be “on hand to offer advice and support to Keith and the Executive Committee,” the company said.

Investor Meeting Postponed

A spokesman for AkzoNobel told the Wall Street Journal that Büchner had "taken on too much work."

The company said Büchner would return to work “in the first half of October,” but an investor meeting scheduled for Oct. 22 has been postponed indefinitely. Meanwhile, AkzoNobel’s Q3 results are due to be published Oct. 18.

The company has been struggling for a year, although the second quarter was slightly better than expected, squeezing out single-digit revenue increases largely through price hikes.

CFO Keith Nichols will temporarily assume Büchner’s duties.

Büchner’s appointment was announced nearly a year before he took over in April from longtime CEO Hans Wijers.  Büchner had headed Swiss machinery maker Sulzer AG for five years.

Market Concerns

AkzoNobel’s stock took its biggest tumble in a year after Büchner’s leave was announced, according to Bloomberg.

Shares fell 5.5% to close at €46.16 ($60.55) a share in Amsterdam, declining from a 52-week high in the previous session, the Wall Street Journal reported.

“I was sad to learn about Ton’s condition, and we all look forward to seeing him back in the office shortly,” said Karel Vuursteen, Chairman of the Supervisory Board. “However, in the meantime, we have a highly experienced Executive Committee and, together with Keith, they will provide strong leadership until Ton is back.”