- The shares of the auto part retailer, Bapcor, reached its new 52-week low today following the announcement.
- The company announces the sudden retirement of the CEO and managing director of Bapcor, Darryl Abotomey.
- Due to the “untenable” position of CEO and MD, the unanimous decision led to kicking out of Abotomey.
The shares of the Automotive company, Bapcor (ASX: BAP), reaches their new 52-week low today as the company announces the sudden retirement of the CEO and managing director of Bapcor Darryl Abotomey.
Shares closed in red today at AU$6.41, a 52-week low; down 6.5%.
What led to the sudden exit of Bapcor CEO and managing director?
On 23 November 2021, BAP announced that Abotomey would retire on 28 February 2021, and the date was mutually agreed by both CEO and the company. There was a union among the board in terms of change in leadership, but after the announcement, the relationship between the board and Abotomey became harsh.
The position of CEO became “untenable” and led to the unanimous decision to retire Bapcor CEO and MD with immediate effect. Accordingly, in lieu of the notice period, Abotomey will be compensated.
The management of Bapcor explained through ASX announcement that,
Who will be the new CEO of Bapcor?
Mark Powell, present non-executive director at BAP, will act as an acting CEO from February end. Since Powell cannot join on an immediate basis, Noel Meehan (present CFO) will serve as an acting CEO immediately.
The decision to retire CEO and MD came forth when the company planned to expand its Asian market, consolidate its distribution centres, and enhance its supply chain. The shares of Bapcor were trading in red for quite a few days, but now it has reached its 52-weeks low. It will be interesting to see how the company buckles up to push its shares up.