Orica chief executive Ian Smith will step down as the company's chairman says a new leader with a different management style is needed.
The management change comes amid reports a senior staff member had made a bullying complaint against Mr Smith, which led to an internal company review.
Chairman Russell Caplan said the company had launched a search for a new CEO and Mr Smith would step down once a replacement was found.
"The board and Ian agree that this is an appropriate time to move forward with transition to a new leader with a different management style who will consolidate and build on the foundations that have been laid," Mr Caplan said, without making reference to any complaint.
The company's shares had fallen 56 cents, or 2.7 per cent, to $18.65 by 1020 AEDT.
Mr Smith, who previously headed gold miner Newcrest, oversaw a major overhaul of the company's structure, including the sale of its chemicals business for $750 million and transition into a pure-play mining services group.
IG market strategist Evan Lucas said that despite a polite statement, it looked like Mr Smith had been unceremoniously fired.
The combination of a bullying complaint and aggressive style plus an indifferent market reaction to the company focusing on its mining explosives business during a market downturn looked to have sealed Mr Smith's fate, he said.
The board said Orica was a more resilient company than before Mr Smith took over.
Mr Smith said Orica was more sustainable through all parts of the resource commodity cycle.
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