Lovisa shares slide on CEO change
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More news: Lovisa shares were down 8.8% by 11:45am, at $30.92, following an announcement on its CEO change.
Lovisa will be run by CEO Victor Herrero for one more year before being handed to Smiggle boss John Cheston. Lovisa has been under fire from shareholders over excessive remuneration to Herrero, who was paid a $30 million salary.
Lovisa CEO Victor Herrero to be replaced by John Cheston next year
The news: Jewellery retailer Lovisa has announced that CEO Victor Herrero will depart from the company next year and will be replaced by Smiggle boss John Cheston.
The numbers: Herrero, a veteran of Spanish retail giant Inditex, which owns the Zara brand, joined Lovisa in December 2021. He will continue in his role until 21 May, 2025.
Shares in the company were down nearly 6% to $31.98 on the news.
Cheston, who currently leads Smiggle, will join as CEO and managing director from 4 June, 2025, Lovisa said.
The context: Lovisa has been under fire from shareholders over excessive remuneration to Herrero, who was paid a $30 million salary. In November, shareholders voted against the jewellery chain’s pay report for a third year running.
Lovisa chair Brett Blundy said he was pleased Herrero had extended his contract for another year. He also lauded Cheston as a highly successful retailer and said he would be joining the retailer at a "very exciting time" as the company continues its global growth.
The source: ASX announcement
