Magellan Financial shares tumble on sudden CEO exit
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More news: Shares in struggling fund manager Magellan have fallen 5.4% in early trading after the sudden exit of chief executive David George. George's role officially ends today, but the outgoing chief will be available until the end of the year to assist the handover, Magellan said in a statement. Magellan shares were trading at $6.18 at 10:30am AEDT.
Magellan CEO David George heads for the exit
The news: Magellan Financial’s challenges look to continue after the troubled money manager announced its CEO David George would step down with immediate effect.
The numbers: George, who was also the managing director, departs abruptly after 17 months in the role. Andrew Formica will assume an executive chairman role while the company searches for a new CEO.
The context: “The board, in consultation with David, believes it is time to refocus leadership which will accelerate the progress made to date,” Magellan said. The decision adds to the turmoil for the fund manager, which has endured investment underperformance, departures of senior management and significant outflows over the last three years. Earlier this month, Magellan revealed its funds under management had slumped to a nine-year low of $35 billion at September-end. Magellan shares are down by more than a third over the last 12 months.
The source: ASX announcement
