The Nuix Ltd (ASX: NXL) share price will be on watch this morning after the company announced two key changes in management.
Chief Executive Officer (CEO) Rod Vawdrey has retired from the company. While in a separate announcement, Chief Financial Officer (CFO) Stephen Doyle’s employment contract has been terminated by mutual agreement.
Since a share price high of $11.15 in January, shares have plummeted 75% after two guidance downgrades, media allegations of governance and cultural issues and a Section 19 notice issued by the Australian Securities and Investments Commission (ASIC).
CEO falls on his sword
Vawdrey will remain in the role of CEO while an international search by executive recruitment firm Russel Reynolds is conducted.
Nuix Chairman Jeff Bleich said:
“Rod’s decision reflects his deep commitment to Nuix and love for the company. Rod has agreed to remain at least through the announcement of end of year results, and throughout the process required to find the right replacement to ensure the smoothest possible transition.
CFO on the outer
Conversely to Vawdrey, Doyle will leave the company relatively straight away. Former Star Entertainment Group Ltd (ASX: SGR) CFO Chad Barton will take over on an interim basis from 21 June.
Doyle’s employment will officially conclude on 30 June. Meanwhile, he will retain no operational duties however will assist with the handover of his responsibilities to Barton.
Bleich thanked Doyle for more than a decade of service:
“We thank Stephen for his many years of service to Nuix and wish him the best for the future.”
The Australia Financial Review reported Doyle has not been seen at his “office for the last fortnight, including May 31 when the company announced its second earnings downgrade in six weeks”.
My take
Given both departures were announced on the same day, it seems Vawdrey voluntarily fell on his sword in contrast to Doyle who has effectively been pushed out the door. Moreover, the comments by Bleich reinforce a smoother exit for the CEO compared to the CFO.
The change in management is a positive for Nuix shareholders, who have experienced a volatile share price since the October initial public offering. Hopefully, a new management team is able to revive the companies growth prospects and share price.
Despite the change in management, I’ll be waiting to see the findings from the independent board committee investigation into potential instances of past wrongdoing.
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