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Why is the EML (ASX:EML) share price dropping again?

The EML Payments Ltd (ASX:EML) share price is down again after another announcement by the company - the CFO is leaving.

The EML Payments Ltd (ASX: EML) share price is down again after another announcement by the company.

EML Payments is a global payments company that operates in Australia, the UK, Europe and the US. Its customers are diverse and include major banks in Europe, government, retail brands and financial service companies.

CFO leaves

The company announced today that it had made an agreement with the chief financial officer (CFO) Robert Shore that he will step down from his role and leave the company in mid-April 2023.

Mr Shore joined EML six and a half years ago, becoming the CFO in late 2018. He will work with EML over the next three-month period to ensure a “smooth transition.”

But, the EML share price may be down again because of the uncertainty raised by the loss of a key figure.

Replacement

The current EML European chief financial officer Jonathan Gatt will be the interim group CEO, starting immediately, while it conducts an internal and external global search for the position.

Before joining EML, Mr Gatt worked at GE Capital for 17 years where he held a number of finance roles, including being the CFO of the remaining regulated businesses as it transitioned out of financial services in the US and Europe.

Management comments

EML CEO and managing director Emma Shand said:

The board and I thank Robert for his contribution to EML and wish him all the best for the next chapter in his career.

We recently announced a new strategic direction for EML to become an embedded finance leader in four key sectors over the next five years and to streamline the business to be more operationally efficient, driving performance and accountability. We are focused on execution and delivering for our people, customers and shareholders.

Final thoughts on the EML share price

This business used to have a lot of promise, but things have gone terribly wrong over the last couple of years.

Can it turn it around? Maybe. New management could help things. But, with the regulatory scrutiny, it could be a while before things look much more promising.

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