Two of Trafigura Group’s most senior executives are leaving the company in the second major shake-up in less than a year at one of the world’s top commodity traders.
Executive director and long-time head of oil Jose Larocca will retire in September, while chief financial officer Christophe Salmon is leaving in June, the company said in a statement on April 5.
The departure of the two men, among the most senior figures in the global commodity trading industry, comes after a period in which Trafigura has reported record profits but been roiled by trading missteps in nickel and oil and charges of wrongdoing.
The changes are also the latest signs of a generational transition in leadership at Trafigura, which is one of the world’s biggest merchants of oil and metals. Its senior traders have been jostling for position after the announced retirement last year of one of the company’s longstanding leadership trio brought an end to a decade-long period of stability in its top management.
Growing tensions between the company’s energy and metals divisions have also fuelled the internal manoeuvring, which culminated in a sweeping management reshuffle in September that solidified Mr Larocca’s position as one of the top two executives, alongside chief executive officer Jeremy Weir.
One of Trafigura’s longest-standing executives, Mr Larocca was a protege of founder Claude Dauphin and led the company together with Mr Weir and former chief operating officer Mike Wainwright for the past decade since Mr Dauphin’s death.
Former BNP Paribas banker Salmon joined Trafigura in 2012 and has served as CFO for almost 10 years. He will be replaced by Mr Stephan Jansma, currently the company’s CFO for Asia Pacific.
In an internal e-mail to Trafigura executives on April 5, Mr Larocca said he is leaving to focus on preparations for the Paris Olympics, where he is competing as a member of Argentina’s showjumping team, and emphasised that his departure was not related to the company’s recent legal issues, as did a company spokesperson.
Trafigura on March 28 pleaded guilty in a US court to a decade of bribery in Brazil, including the admission that Mr Dauphin himself oversaw bribes. It is also facing a separate case in Switzerland, where it has been charged over allegations of bribing public officials in Angola. Mr Wainwright, who last year stepped down as COO, also faces charges.
“This is a decision I have been thinking about for some time and been discussing with the board. After 30 years in the company, I think now is the right moment to step down,” Mr Larocca said in the e-mail seen by Bloomberg News.
“Given the timing, there will no doubt be some speculation and so I also want to be clear that my decision to retire has no connection to any legal matters including the company’s recent resolution with the US Department of Justice,” he wrote. BLOOMBERG
