The EML Payments Ltd (ASX: EML) share price has sunk 20% in response to a change to the leadership of the business.
EML has been through a rough time over the last year. But it has hit another 52-week low after the departure of its boss.
Resignation
The Managing Director and CEO Tom Cregan has resigned from the business.
No official reason was given for his departure, though perhaps it will come out later if the media are able to find out the reason.
However, EML did say that Mr Cregan will receive his contractual entitlements and his equity will be treated in accordance with the terms of the grant. No termination benefits will be provided.
The EML Chairman Peter Martin said:
We all owe a real vote of thanks to Tom Cregan who has been an integral part of the EML growth story for over a decade. He has tirelessly led the company from a small technology business in Australia to a diversified payments leader operating in 32 countries.
New leader
EML has chosen Ms Emma Shand to be the new Managing Director and CEO, effective immediately.
The ASX payments share said that Ms Shand has been a very successful executive with 25 years of global experience in technology, capital markets and ‘diversified financial services’ across 30 different countries. That includes 16 years in senior management roles at Nasdaq.
EML also said that she has had experience in a broad variety of operating and technology environments and diverse cultural settings. The c9mpany also said that “in light of EML Payment’s significant European business, Ms Shand will dedicate substantive time and presence in Europe.”
Ms Shand has been a member of the EML board of directors since September 2021, so she already knows about the “exciting growth opportunities”.
Mr Martin said that Ms Shand has a “very impressive” track record of initiating and overseeing complex, transformational change.
Final thoughts on the EML share price
Bad news keeps hitting EML shares. A change of leadership during this difficult time is not ideal. However, the new leader could help the business continue growing over time.
I do believe there’s plenty to like about EML. But I can see why investors have punished EML in the short-term so much with the current uncertainty. However. I believe that EML has a bright and compelling future as more payments go digital, so it could be a good long-term idea at this level. But volatility could certainly continue.
