JB Hi-Fi Limited (ASX: JBH) has announced two changes to its board with ex-chairman James King making way for the incoming Wai Tang.
King, who is set to retire from his role as non-executive director, has served on the electronics and white goods retailer's board for more than 11 years and served as its chairman between May 2006 and September 2007. Although JB Hi-Fi is losing plenty of expertise and experience through King's retirement, it will welcome Wai who has "extensive experience" in managing retail businesses and in supply chain and operations management.
Indeed, she has experience in senior executive roles at Pacific Brands Limited (ASX: PBG) and Just Group, while she also served as CEO of sleepwear giant Peter Alexander (which is now owned by Premier Investments Limited (ASX: PMV)). As it stands, she has been appointed as an 'additional appointee' and will stand for election at the company's Annual General Meeting, to be held on 29 October.
JB Hi-Fi has consistently outperformed the market's expectations across King's tenure,with long-term shareholders being well rewarded in that time. There is no doubt his expertise has contributed to the company's enormous success which has seen the share price double since the beginning of 2013 and soar 517% over the last decade.
By comparison, Myer Holdings Ltd (ASX: MYR) has declined 35% since January 2013, while rival Harvey Norman Holdings Limited (ASX: HVN) has risen a more modest 71% over the last 10 years. Countless other rivals have struggled to keep up with the changing landscape of the retail industry, while Dick Smith Holdings Ltd (ASX: DSH) even needed private equity to improve its business.
Other than its low-cost operations, part of the reason behind JB Hi-Fi's success has been its ability to adapt to new trends and consumer tastes, which I believe it will continue to do in the future. Despite the company's strong rally in price, JB Hi-Fi Limited could still be a reasonable proposition for long-term investors.
The group's lucrative 3.9% fully franked dividend yield (grossed up to 5.5%) is simply the icing on the cake.
