FrontRange shareholders have approved a proposal to grant CE Michael McCloskey share options amounting to 10% of the group`s shares on a fully diluted basis.
FrontRange has said that the motivation for the move is to have McCloskey, who was acting CE until Friday, accept a permanent post at the group.
The approval is despite the proposal having drawn criticism from various quarters. An independent assessment by Ernst & Young Corporate Finance deemed the proposal unfair to current shareholders, but reasonable given the strategic need to be able to attract an executive of McCloskey`s stature.
With immediate effect, McCloskey has become CE of FrontRange and chairman, president and CE of the group`s wholly owned US subsidiary, FrontRange Solutions.
Dana Buys has resigned as FrontRange CE to become non-executive chairman and Christo Nel, who has resigned as chairman, is now an independent non-executive director.
"Michael has a proven track record in driving a business such as ours to develop new products and new markets," says Buys.
"FrontRange shareholders recognise that he has the credentials required to take the company to its next level and have overwhelmingly endorsed his appointment as CEO."
Of the shareholders entitled to vote on the proposal, 98.9% of the shares represented voted in favour.
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