Magellan (ASX: MFG) shares tumble after CEO’s sudden exit

Highlights

  • CEO of Magellan, Brett Cairns resigns from the position abruptly citing personal reasons.
  • Cairns will leave the Company on an immediate basis resulting in a sudden change in the company’s leadership.
  • Current financial officer will take up the position of CEO till new CEO is located.

Bapcor Limited (ASX: BAP) shares touched the 52-week low as CEO of the company left on immediate basis as announced on 6 December 2021. Today, Magellan Financial Group Limited (ASX: MFG) has shed off substantially as the long-standing, chief executive of Magellan, Brett Cairns resigns from the position abruptly citing personal reasons.

Cairns will leave the company on an immediate basis resulting in a sudden change in the Company’s leadership.

The overnight exit of the CEO had a drastic effect on the share prices as it lost 5.3% to trade at AU$29.410.

Why Magellan shares are under pressure?

After the market closed on Monday, the sudden resignation from Brett Cairns came as a surprise to the investors since the company was going through difficult times. The equities fund of Magellan has not been able to achieve its benchmark target.

Related readings: How did Magellan Financial Group (ASX:MFG) perform in 1HFY21?

Cairns served as executive chairman, has been part of Magellan’s board since 2007 and became chief executive in 2019. Even though Cairns has been associated with the company for so long, he did not give any explanation for the resignation and simply stated that he is leaving due to personal reasons.

Who will be the chief executive now?

Until, the Company finds a new chief executive, present Chief Financial Officer - Kristen Morton has been promoted to the post of Interim CEO. She has been with Magellan since 2013 and has a good understanding of the company’s operations.

BOTTOM LINE

The resignation came forward when the company reported significant underperformance of its global funds. This further pushed down the Company’s shares.

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