Year 2009

 June 2009

Prasert outlines PTT succession search

Business

By NAREERAT WIRIYAPONG

As his term as president and chief executive of PTT Plc ends in the next 28 months, Prasert Bunsumpun has begun a search for his successor to lead the energy giant for eight years.

Mr Prasert, whose term was renewed two years ago, also believes the next chief of PTT should have experience dealing with politicians.

"As the government controls the majority stake of PTT, the selection has to be endorsed by the government," he said.

"I prefer the new chief to stay in office for eight years, but four would be enough for him to lay a foundation, develop and implement strategies."

Citing PTT's giant peer, Siam Cement Group (SCG), Mr Prasert said Kan Trakulhoon was named president in his forties, giving him enough time to outline growth strategies. Age is thus a factor for potential successors. He has narrowed his list but declined to elaborate.

PTT, now the largest listed company on the Stock Exchange of Thailand (SET), has eight vice-presidents. Chief executive officers of more than 10 subsidiaries are also on the short list.

First named in 2003, Mr Prasert is the sixth leader of PTT in the 30-year history of the privatised national oil company.

He feels outsiders would be less capable to head a company such as PTT.

"The new president should also know colleagues in the energy business. Even top executives of major oil companies such as Chevron or Esso have less experience in dealing with politicians," he said.

Teamwork is also critical during the transition period, said Mr Prasert, as PTT aims to transform itself into an international player. The new leader and his team need to merge the cultures of different PTT entities operating in different countries.

It is Mr Prasert's goal to move PTT into the top 100 of the Fortune Global Ranking from its current 135th place.

"This is something I am worried about. To transform ourselves into an international player with global operations, it is not easy to manage different cultures to become a one-colour, one-culture enterprise," he said.

"We need a good match of colleagues," said Mr Prasert, referring to himself and retiring chief financial officer Pichai Chunhavajira.

Mr Pichai, 60, submitted a resignation letter but it is not yet effective. Mr Prasert has prepared someone to take the post, which is key for PTT to survive the global financial crisis.

The new president needs to lead PTT to growth.

"Over the last four to five years, PTT was on the uptrend. The challenge now is sustainable growth," Mr Prasert said.

"Transparency is also critical. If we are efficient and competitive but not a good corporate citizen, the organisation could be on the verge of collapse."

His other positions include chairman of the Thai Listed Company Association and the Federation of Thai Capital Market Organisation, and adviser to the SET and the Thai Investor Association.

When he steps down at 58, he wants to spend most of his time travelling and resting. He brushed aside speculation he would enter politics. "Everyone has his own interest. If you ask me, politics is not my cup of tea," he said.

Shares of PTT closed on Friday on the SET at 231 baht, up 2 baht, in trade worth 1.8 billion baht.

By Bangkok Post

June 8, 2009

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