Leadership transition starts at Boral for next phase of growth as Vik Bansal steps down to join SGH board

The linchpin of Boral’s transformation from ‘good to great’ is transitioning to a new role at parent company SGH, while the prospect of a residential housing construction boom bubbles away in the background. Boral chief executive Vik Bansal is set to retire from leading the building products supplier early next year and will then join the SGH board as a non-executive director. SGH said it has worked closely with Mr Bansal on a structured succession to ensure a smooth leadership transition. As part of this transition, Boral executive Matt McKenzie has been appointed chief operating officer. Mr Bansal became Boral’s chief in late 2022 and led ‘a good to great’ strategy focused on improving operational performance, including consistently delivering mid-teen earnings before interest and tax margins, which helped propel SGH’s strong share price growth. SGH’s shares are up more than 200 per cent since late 2022. SGH chief executive and managing director Ryan Stokes said the change Mr Bansal made to Boral has been “quite fundamental” and the strategy he has implemented will be built upon, not drastically changed. “I think that’s a hallmark of a great leader, the fact that an operating model is entrenched deeply in the business,” Mr Stokes said. “Under Vik’s leadership, the ‘good to great’ strategy and the ‘Boral way’ operating discipline have been deeply embedded, driving a disciplined focus on performance, stakeholder, and cultural alignment.” Mr Stokes said Mr Bansal’s expertise would not be lost. “He does step into a role at SGH, so it’s not like he’s leaving that the organisation’s sphere completely. He’ll still have a role, and I think he can contribute his operational capability through the SGH board across other parts of the business. Mr Bansal said it was “an honour” to have led Boral through a “pivotal phase” in its transformation. “I’m very proud of what we’ve achieved in the last few years, I’m leaving the role with Boral having a great asset base, great team and great culture,” he said. After holding CEO roles for 10 years straight Mr Bansal, who is turning 60 this year, said he needed a change of pace. “It’s been constant, non-stop. The time is right for me to build a portfolio of non-executive roles.” “I’ve really enjoyed with working with Ryan (Stokes) and it’s great I’ll continue to do so on the SGH board.” Mr Stokes and Mr Bansal both believe the residential construction sector is shaping up to be a tailwind for Boral’s CEO successor to capitalise on. “We see the residential housing demand that needs to be met with supply being an opportunity, and we expect that to come in, probably not this calendar year, maybe next year,” Mr Stokes said. “Everyone talks about this need to add more residential housing in every capital city.” Mr Bansal said residential construction was “100 per cent” a tailwind for Boral in the long-term. “Residential has been soft over the past couple of years so that will definitely have to turn at some stage and the Olympics (Brisbane 2032) is another tailwind.” SGH acquired Boral in July after holding a majority of the company’s stock since mid 2021. Boral is part of a diverse portfolio of businesses in SGH stable, which includes Caterpillar retailer WesTrac, industrial hire company Coates Hire and stakes in gas producer Beach Energy and WA Newspapers. WA Newspapers is the publisher of The West Australian, thewest.com.au and The Nightly.