AGL ENERGY managing director and chief executive Michael Fraser will retire from his role with the company by 30 June, 2015, the company has announced.

Mr Fraser will complete his eighth year in the role in October, following over 30 years’ service with the company. He said the timing was right for him to step down.

“AGL has a bright future ahead of it but this is the right timing for me to retire from executive life,” he said.

“It has been an absolute privilege to lead the many great people at AGL and see the huge improvements we’ve made right across the business over the last seven years, in particular, the quality of service we now provide our customers.”

AGL Energy chairman Jerry Maycock said Mr Fraser had provided outstanding leadership to AGL and was a great role model for the organisation.

“Under his guidance AGL has developed very substantially into one of Australia’s leading vertically integrated energy companies,” he said. “We will be sorry to see him leave, but absolutely respect his decision.”

“In keeping with Michael’s passion for the organisation, he remains very committed to the Company’s business outcomes for the remainder of his term. This includes overseeing the integration of Macquarie Generation if the acquisition proceeds,” Mr Maycock added.

Mr Maycock said the board had commenced a selection process for a new managing director and CEO and would consider both internal and external candidates.

“One of the Board’s priorities has been on succession planning and developing bench strength within the executive team but, as you may expect, we will also consider external candidates for the role”, Mr Maycock said.

“There is a lot of goodwill between Michael and the Board which will ensure an orderly transition.”