The Cleanaway Waste Management Ltd (ASX: CWY) share price is plummeting 9% today following an announced change in the leadership team.
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During late morning trade, the waste management’s shares are down a sizeable 7.88% to $2.40.
What’s driving the Cleanaway share price lower?
According to its release, Cleanaway advised that its CEO and Managing Director, Mr Vik Bansal, will step down.
The company revealed that the departure of Mr. Bansal comes as no surprise as management had been previously discussing succession plans for a while. Cleanaway stated Mr. Bansal took the holiday period to reflect on his priorities and brought his resignation forward upon his return.
Having served as CEO since August 2015, Mr. Bansal will use the next few months to commence the leadership transition. It is expected that the process will be concluded sometime within the first half of the 2021 calendar year.
Cleanaway Executive Chair, Mr. Mark Chellew, will take up on extra duties for the period until a new permanent CEO is found.
In addition, Chief Financial Officer (CFO), Mr. Brendan Gill, will delay his retirement plans to take on the role of Chief Operating Officer. From there, Mr. Gill will assist Mr. Chellew with interim CEO responsibilities as well as support Mr. Paul Binfield as the new incoming CFO.
Cleanaway Chair, Mr. Mark Chellew, recognised Mr. Bansal for his contribution to the company, saying:
We thank Vik for his contribution in achieving a significant turnaround of Cleanaway over his period as Chief Executive Officer. Vik has led Cleanaway’s transformation and growth with enormous dedication, and it shows in the company’s financial results. We thank him for his service and wish him all the very best for the future.
Adding to Mr. Chellew’s comments, Mr. Bansal, went on to say:
I am extremely proud of the transformation of Cleanaway into Australia’s leading waste management business. We have created significant value for shareholders through refocusing the business, consolidating under one brand, successfully integrating the ToxFree acquisition, and targeted investment in the best-in-class infrastructure, facilities, and extending our participation in the waste value chain.
It is pleasing to leave Cleanaway extremely well positioned, with a good management team for further growth and success. I do believe, considering the point in the journey and exciting strategic choices in front of us, now is the right time to hand the baton across to a new leader.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.