Tabcorp shares slide after CEO exit over 'offensive' language
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More news: Shares in Tabcorp have slid 6.5% to 71.5 cents each in early trading on the ASX after the wagering giant announced late on Thursday its chief executive and managing director Adam Rytenskild would leave the company immediately.
The announcement came after the board became aware of allegations that Rytenskild had used "inappropriate and offensive language" in the workplace.
Rytenskild was appointed to the role nearly two years ago and his exit comes weeks after Tabcorp posted a first-half net loss of $636.8 million. The company is now searching for a new CEO.
Tabcorp CEO Adam Rytenskild resigns over alleged use of 'offensive' language
The news: Tabcorp has announced chief executive and managing director Adam Rytenskild is stepping down and will leave the company immediately after the board became aware of allegations that he had used "inappropriate and offensive language" in the workplace.
The numbers: Rytenskild, who was leading the gambling giant's digital push, has worked for Tabcorp for more than two decades, including almost two years as CEO and MD.
His resignation comes a few weeks after the company reported a swing to first-half net loss of $636.8 million while heavily writing down the value of assets amid softer trading conditions.
The context: In a statement, Tabcorp said Rytenskild will receive legally required termination payments but will forfeit unvested incentive payments.
The company said it wouldn't provide any further detail on his conduct but noted that the language used was "inconsistent with Mr Rytenskild's continued leadership of the organisation".
It has appointed Maritana Partners to search for his replacement. Chairman Bruce Akhurst will take on additional duties as executive chairman in the meantime.
What they said: "I don't recall making the alleged comment and it's not language I would usually use, but I have regrettably agreed to resign. Tabcorp has been an enormous part of my life for many years and I believe in the journey the company is on," Rytenskild said.
Akhurst said: "Today's change does not impact the strategic direction of the company. We have the depth and capability across the executive and the senior leadership team to continue our transformation."
The source: ASX announcement
