- Shares of Bank of Queensland fell over 6% today (28 November).
- The decline was triggered by the sudden exit announcement of BOQ’s current CEO.
- BOQ board believes that new leadership is required for the bank’s expansion.
Earlier this morning (28 November 2022), Bank of Queensland Limited (ASX:BOQ) broke the news of its current chief executive officer’s (CEO) exit from the bank with an immediate effect. The bank has also started a domestic and worldwide executive search for a new managing director and CEO in response to George Frazis' departure as CEO.
The BOQ board anticipates completing the search and commencement in around nine months.
Following the news, shares of Bank of Queensland sunk 6.349% and were trading at AU$7.080 apiece as of 11:15 AM AEDT, 28 November on the ASX. Including today’s decline, Bank of Queensland’s shares have dropped 3.27% in the last five trading sessions and 3.13% in a month. In six months, the share price of the Bank of Queensland has shed 7.66%, and in a year, it has dropped by 8.38%.
Why is the Bank of Queensland CEO leaving?
According to the ASX filing, George has worked for Bank of Queensland for the past three years and has significantly contributed to the company's growth. The BOQ board, however, feels that the organisation should now be led by "different leadership" in order to establish a stronger and more resilient bank through upcoming cycles.
As stated in the ASX report, BOQ chairman Patrick Allaway has assumed the position of executive chairman for the duration of the CEO search. Karen Penrose, a current BOQ non-executive director, will serve as the leading independent director during this time.
The sudden exit of Mr Frazis pushed the BOQ board to appoint Mr Allaway as executive chairman so that the senior leadership team could maintain stability while remaining focused on their current positions and responsibilities.
Commenting on the news, Patrick Allaway said:
Image Source: © 2022 Kalkine Media ®
Data Source: Company announcement dated 28 November 2022
What’s next for the Bank of Queensland?
Along with releasing the CEO exit news, Bank of Queensland also mapped out its key areas of focus for the future: