--- title: "Ukrainian Pet Food Manufacturer Kormotech Expands Board Amid Global Challenges" url: https://newscentral.site/ukrainian-pet-food-manufacturer-kormotech-expands-board-amid-global/ language: en publisher: "News Central Site" section: "Business" published: 2026-10-13T07:00:00.000Z updated: 2026-10-13T09:43:55.110Z id: 1a8a365e-7f92-45ed-8d97-7117d6d01857 source: "Fortune https://fortune.com/2026/10/13/kormotech-ukraine-pet-food-ceo-how-i-became-bottleneck/" attribution: "Link to https://newscentral.site/ukrainian-pet-food-manufacturer-kormotech-expands-board-amid-global/ and name News Central Site when you quote or summarize this story." --- # Ukrainian Pet Food Manufacturer Kormotech Expands Board Amid Global Challenges The Ukrainian company's CEO has introduced a supervisory board to oversee operations and provide guidance on strategic decisions in response to the changing landscape due to Russia's invasion of Ukraine. In 2003, my father, sister, and I founded Kormotech, a Ukrainian family-run company specializing in cat and dog food production. Over time, I took on a more prominent role within the organization, becoming its CEO in 2008. Under my leadership, the company expanded rapidly, with revenue soaring to $210 million by the end of its 23-year run. This impressive growth earned Kormotech a spot among the world's top 50 pet food manufacturers. Kormotech's success was largely due to my approach as CEO, which emphasized swift decision-making and trust in intuition over lengthy approval processes. However, this same leadership style began to hinder the company's progress when we set our sights on global expansion in 2021. At that point, I realized that my management style had become a major constraint. As tensions escalated with Russia's invasion of Ukraine in early 2022, Kormotech faced significant challenges and uncertainty. We recognized that our growth ambitions were at risk unless we adapted to the changing landscape. To achieve this, we decided to introduce an independent supervisory board to oversee company operations and provide guidance on strategic decisions. In response to these new circumstances, we appointed a majority of independent directors to the nine-member board, granting them five votes out of nine, enough to veto even my own decisions if necessary. While agreeing to share power was a difficult step, it marked an essential shift towards greater accountability and oversight within the company. The implementation of the supervisory board has been a learning experience for me as CEO, forcing me to confront the realities of relinquishing control and sharing power with others. The lessons I've gained from this process will be crucial in guiding Kormotech's continued growth and success. As Kormotech expanded rapidly, its management structure remained remarkably informal. In fact, when the company was first starting out, there were just five employees, and they didn't even have an office. Instead, they would often discuss business strategies over lunch at their factory. This startup mentality allowed them to move quickly, taking calculated risks that paid off in a big way. By operating outside of traditional corporate norms, Kormotech was able to gain a competitive edge over larger multinational corporations. As a result, the company eventually captured an impressive 30% market share in its home country, surpassing well-established brands like Nestlé Purina and Mars. Today, Kormotech has grown significantly, employing 1,500 people across five countries, including the US. However, this rapid expansion has brought new challenges for the CEO. What once made them a strong leader - their ability to make quick decisions without needing to consult others - is now becoming a liability. With so many more employees and processes involved, every decision has far-reaching consequences. To adapt to this new reality, the CEO must learn to rein in their impulse to control every aspect of the business. This requires a willingness to change their own management approach, which can be a difficult and humbling experience for someone who's used to being in charge. As Kormotech continues to grow and evolve, its leadership structure will need to adapt as well. One key consideration is the role of the supervisory board, which should ideally be able to make decisions independently without fear of override by the CEO or owner. When the board exercises its veto power, it can be a difficult pill for entrepreneurs like myself to swallow. Recently, we were poised to acquire a Ukrainian company, and all that remained was the finalizing of the agreement by our lawyers. However, the board intervened, blocking the deal. While I wasn't pleased with this turn of events, the outcome ultimately proved beneficial. We managed to negotiate significantly better terms than initially proposed, which confirmed my understanding of why the board's input is crucial. Its role extends beyond simply advising me; it also provides an essential check on my decision-making authority. One key aspect of having a strong board is its ability to bring fresh perspectives and insights that may not have occurred to me as the owner. Sometimes I find myself regretting not thinking of certain ideas proposed by the board, which highlights their value in broadening our collective experience. As we look to the future, succession planning becomes increasingly important for family businesses like Kormotech. My daughters, who are the eldest generation from my sister and me, have already expressed reservations about taking on day-to-day management roles within the company. The prospect of handing over Kormotech to the next generation is a daunting one, but I'm determined not to leave behind a legacy that's tied to my personal approach. Instead, I want to ensure the company remains adaptable and able to evolve in response to changing circumstances without being constrained by my own management style. As Kormotech's owner, I'm currently wearing multiple hats - CEO, member of the supervisory board, and owner. This setup is a risk for a family business, making it overly reliant on one individual. As long as I remain indispensable, the issue persists. To address this problem, I plan to bring in an external CEO within the next few years. In doing so, I'll gradually step back from hands-on management, allowing someone else to take charge. This move will not only mitigate the risk of my departure but also allow Kormotech to adapt more quickly to changing circumstances. Once a new CEO is in place, it's likely that they will bring fresh perspectives and strengths to the role, potentially surpassing my own abilities in some areas. If this happens, I'll have successfully fulfilled my duty as owner by creating an organization capable of thriving without me at its helm. --- Source: [Fortune](https://fortune.com/2026/10/13/kormotech-ukraine-pet-food-ceo-how-i-became-bottleneck/) Published by News Central Site: https://newscentral.site/ukrainian-pet-food-manufacturer-kormotech-expands-board-amid-global/