By a staff reporter
UGL Ltd will undergo a corporate review, encompassing a detailed audit of its management structure that could see significant changes to the group's executive team, including Richard Leupen's position as chief executive officer.
In a statement to the Australian Securities Exchange, UGL said the review was prompted by significant growth in UGL’s property business, which now represents close to 50 per cent of the company’s earnings.
"The board of directors has resolved to undertake a review of the optimal corporate structure under which UGL’s engineering, operations and maintenance and property businesses should operate," the group said.
Chairman of the UGL board Trevor Rowe said the board has agreed that current CEO Richard Leupen will deliver the review and execute its recommendations and outcomes.
"At the conclusion of the review, if the board determines that a change to the current corporate structure is required, it is intended that Richard will continue in his role for a short time beyond the current end date of his contract on 31 March 2014 to complete the work," Mr Lowe said.
"Following the conclusion of the review, we will provide an update on the programme the board is undertaking to ensure the orderly transition of management, including the criteria for assessing both internal and external candidates for CEO succession.”
However, UGL cautioned there are a number of significant issues to be considered and as such, there is no assurance that the review will result in a change to the current corporate structure.
Goldman Sachs has been appointed to assist in the review