Frank James steps up as Wehby steps down at GK

In one month, Frank James will take over as Group CEO of GraceKennedy Limited, while Don Wehby heads into retirement.

James, who currently heads up the food and financial serves conglomerate’s domestic food operations, promised continuity at the announcement of his promotion.

Wehby, who has been CEO of GraceKennedy since July 2011 after serving in various senior roles, took a leave of absence last year to deal with un-stated health issues. Group Chief Financial Officer, Andrew Messado, is currently holding down the fort as interim CEO.

James will relieve him permanently on February 14, a date which coincides with GraceKennedy’s 103rd anniversary. He will also join the GraceKennedy board as a director.

There is no word yet on who will replace James as head of the domestic foods division.

“For the next few weeks, we will be focused on honouring Don’s legacy and ensuring there is a smooth transition to Frank,” GK General Counsel & Chief Corporate Secretary, Gail Moss-Solomon said on Thursday. “Yes, there will be further changes at the senior leadership level and those announcements will be made by February 14th,” she told the Financial Gleaner.

Others at the company say James’ promotion would likely trigger a raft of changes..

“With just that one elevation, you can expect that there will be a sizeable number of changes coming behind it,” said one person. “They’re working at it and double-checking so that everything can be in place by the time that date in February rolls around.”

Former CEO of GraceKennedy and past chairman Douglas Orane says the handover of leadership from Wehby to James was yet another demonstration of effective succession planning, which has been part of a long tradition at GraceKennedy.

Wehby served under Orane’s leadership then succeeded him as Orane entered retirement. In-between, Wehby left to work in government at the Ministry of Finance, where he served in a ministerial role for two years. He returned to GraceKennedy in October 2009 in the role of group chief operating officer, and less than two years after that was promoted to the chief executive position.

“If you look at the recent decades, there was a smooth transition from the Honourable Charlton Alexander to Raf Diaz in 1989. There was a further smooth transition from Raf, my good friend, who I worked with for well over a decade at that time,” said Orane. “He was the group CEO in 1995 when he handed over to me; and then the next transition in the position of group CEO was in 2011, from me to Don Wehby. Now we have another transition taking place from Don to Frank James,” he said.

Orane added that the GraceKennedy succession ethos carries with it constant training of persons at all levels of the company to facilitate their movement up the ranks.

“At every level, including at the CEO level and going right across the top and middle management, we have formalised succession planning. We are continuously training for upward mobility at least three people for every position. So therefore, whenever somebody retires or moves to another position, there is a wide range of choices that the company has,” Orane explained.

He notes that he retired as Group CEO at age 63; and that with Wehby retiring at about 61 years old, he should have time to make contributions in very fulfilling ways. Wehby is a member of the Senate, having first been appointed as senator in 2007, and reappointed at different points thereafter.

“I’m glad I retired at age 63, because I’ve been able to dedicate my life to helping the younger generation of Jamaicans to achieve their potential,” Orane said.

Under Wehby’s leadership, the group virtually tripled its revenue, from $58 billion in 2011 to $155 billion in 2023. His tenure was characterised by expansions through mergers and acquisitions, which solidified GraceKennedy’s presence in the Caribbean, North and Central America, the United Kingdom and Europe.

“I am proud of the progress we have made during my tenure, and I am confident that the new leadership team will take GraceKennedy to even greater heights,” said Wehby, while expressing gratitude to colleagues and customers for their support.

Wehby joined GraceKennedy in 1995 and became head of finance four years later, then took on other roles throughout the years. James joined the group a decade later, in 2005, as vice-president of strategic planning and corporate development. He became Group CFO in 2012 and later took on the role of CEO of GK Foods Domestic, the largest division in the group in 2019. Under his leadership, revenues for GK Foods Domestic grew by more than 60 per cent up to 2023, GraceKennedy said.

Amid the transition to a new leader, current GraceKennedy Chairman Professor Gordon Shirley touted Wehby’s “innovative spirit, impeccable work ethic, and dedication to ensuring that the company continues to make a difference in the communities we serve”, while also noting that the conglomerate was ready for its next growth spurt under James’ leadership.

“The best is yet to come for GraceKennedy,” Shirley said.

Acknowledging Messado’s contribution in the interregnum, the chairman said “his steady hand ensured the company’s continued momentum”.

GraceKennedy’s yearly financial report is pending but for the nine months ending September 2024, the group grew revenue by more than seven per cent to $126 billion, putting it on track towards a new record, while shareholder profit climbed by 11 per cent to more than $6.6 billion. Annual shareholder and group profit continue to recover, following a dip from recent highs of $8.2 billion and $8.9 billion, respectively, in 2021.

GraceKennedy’s vision includes growth in foreign markets as an international consumer group and listing on a major world stock exchange. Specifically, the conglomerate wants to list two subsidiaries: GK Foods in a major foreign market and GraceKennedy Financial Group Limited in regional markets. Those plans, set forth by Wehby, will likely continue under James’s leadership.

“These leadership changes are in keeping with the company’s succession plan and are designed to ensure continuity and drive future growth, in line with its 2030 vision of becoming the Caribbean’s number one brand with Jamaican roots and a global reach,” GraceKennedy said.

With $234 billion in assets and a net worth of $90 billion as of September 2024, GraceKennedy Group operates across Jamaica, the Caribbean, the United Kingdom, the United States, Canada, Europe, and Africa.

Its businesses span banking, insurance, investment management, money services, food manufacturing and trading, distribution of consumer goods and retail grocery.

Reporters Steven Jackson and Neville Graham contributed to this story.

business@gleanerjm.com