Last month, one of the most outspoken shareholders, Tanarra founder John Wylie, wrote to Lendlease to express the view that “the diversified global champion flywheel model is fundamentally broken”.

Looking at the share price, investor frustration towards Lendlease’s board and management is understandable.

Ullmer’s early retirement won’t be sufficient to appease shareholders who are baying for structural change and a board refresh.

Over the past five years, it has fallen 57 per cent while the S&P/ASX200 benchmark index has gained 21.6 per cent. Looking at a 20-year timeframe, the numbers are similarly illustrative: Lendlease shares have lost 73 per cent of their value in that time, while the broader All Ordinaries index has surged 139 per cent.

Even newer shareholders would be disappointed by the one-year stock performance, which is down 22.4 per cent compared with a gain of 9 per cent in the All Ordinaries.

This underperformance will test any shareholder’s mettle, and the louder activist investors calling for change will muster a broad level of support.

Moving Ullmer off the chair will clearly be seen as a victory for shareholders impatient for action. Another long-term director, Nicola Wakefield Evans, has also announced her departure as part of a board renewal.

This may appease investors for a couple of days, but something more substantial needs to come from next week’s strategy briefing.

Changing the person at the top of the board is a necessity, given it is difficult for the individual who is ultimately responsible for a corporate strategy to undertake a volte-face.

Importantly, Lendlease has conceded that the new chairman will come from outside the company, so they won’t be tied to the strategies of the previous regime.

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Lendlease’s largest investor wants the new chairperson to be Australia-based and extensively experienced in the property industry.

It feels like the company must also concede that selling offshore assets and placing others in runoff will be the ultimate goal.

Where there may be some disagreement is the speed at which this will be executed.

To sell offshore assets in the current depressed market will almost certainly lead to writedowns that could run into the billions of dollars, according to analysts.

There will be plenty of execution risk even if the company bows to its investors’ desire to slim down and retract its international tentacles.

There is a lot riding on the strategy update with investors next week.

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