What happened to Transpacific’s share price?
The share price of Australia’s largest waste management company, Transpacific Industries Group Ltd [ASX:TPI] is down 9.6% today at $0.70.
To date, 2015 has been a challenging year for TPI shareholders. In February the company delivered disappointing half yearly results, including a $44.7 million loss, which led to the share price dropping sharply.
The stock has more or less traded sideways since then, but is down more than 10% so far this year.
Why are TPI shares trading lower?
The fall follows an announcement from the group’s CEO Robert Boucher. Boucher told the company that after 18 months in the role he will be stepping down at the end of June.
The announcement comes not long after Boucher signed a new four-year deal in January. At that time, he agreed to stay on to deliver a four-point strategy to grow revenue, boost productivity, make tuck-in acquisitions, and improve landfill capacity.
But now Boucher has resigned so he can return to the US for ‘personal reasons’. The company said it is was understanding of his decision, but disappointed to receive the news.
What now for Transpacific Industries Group Ltd?
Transpacific will now undertake a global search for a new CEO. In the meantime, current CFO Brendan Gill will step into the role of acting CEO. Boucher said he would assist Gill and TPI during the transition.
for The Daily Reckoning Australia