Electronic payment solutions company Prism has appointed a non-executive chairman, and has slashed its executive director compliment by more than half in a further drive to hold costs in check.
Nigel Matthews, who currently holds non-executive directorships at City Lodge Hotels, Kersaf Investments and Massmart Holdings, comes on board as Prism`s non-executive chairman with immediate effect.
Prism made the decision to appoint Matthews in order to adhere to what it describes as the "more onerous governance issues that will become normal corporate practice with King II".
The company also announced that it has reduced the number of executive directors from ten to four.
The remaining executive directors are: CEO and co-founder Alvin Els, CTO and co-founder Graham McKay, operations chief and co-founder Mike Serrao, and the new CFO Jan Hnizdo (previously of I-Fusion).
"This represents a continuing effort to streamline all company operations, and follows a staff retrenchment exercise which had been initiated as part of ongoing cost-cutting measures," Els explains.
Prism has been on a cost-cutting drive in an effort to curtail overheads and the latest move reflects that management is not immune to the strategy.
In February, Prism retrenched 40 staff members as part of its cost-cutting measures.
A new management committee - comprised mainly of the previous directors who have stepped down from the new executive board - has also been constituted to direct the day-to-day running of the company.
Commenting on these changes, Els says: "As we move from an owner-managed entrepreneurial business to a more mature global software and licensing business, we are committed to introducing more formal governance, financial discipline and measured growth. Strong non-executive participation is key to this commitment."
Matthews says board and operational changes at Prism have been designed to tackle the "crisis of confidence" concerns expressed by Prism investors and the market at large.
"Prism is serious and focused about shoring up past weaknesses, and these changes represent an appropriate start," he says.
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