Petra Diamonds Limited has announced a series of changes to its board that will result in a smaller and more efficient board. The changes include reducing the number of directors from eight to seven, merging the Sustainability and Health & Safety Committees, and reducing the fees for the Chair and Non-Executive Directors (NEDs). These changes are part of the company's ongoing cost-saving measures and are in response to feedback from shareholders. The changes will reduce Petra's board fees by at least 25% on an annualized basis.
Jon Dudas, an independent NED, will step down from the board on February 17, 2024, but will assume the role of board advisor for six months until August 17, 2024. Alex Watson, a non-independent NED, will also step down from the board on February 17, 2024, but will assume the role of board observer from that date. José Manuel Vargas has been appointed as a non-independent NED, effective January 1, 2024. Vargas is a significant shareholder of Petra, currently holding approximately 8.57% of the company's issued share capital.
The company will also merge the Sustainability and Health & Safety Committees to form a single Safety, Health & Sustainability Committee, which will be chaired by Lerato Molebatsi, the current Sustainability Committee Chair. Bernie Pryor, the Senior Independent Director, will become the Chair of the Remuneration Committee, and Varda Shine will step down from this role. The fees for the Chair and NEDs will be reduced by 5% from January 1, 2024, except for the Safety, Health & Sustainability Committee Chair fee, which will be slightly increased to reflect the increased responsibilities of the committee.
Varda Shine, Non-Executive Chair of Petra Diamonds, expressed appreciation for the contributions of Jon Dudas and stated that the changes will result in a more efficient board.