Shares of Slater & Gordon Limited (ASX: SGH) are trading lower today after the legal firm announced that its current chief financial officer (CFO), Mr. Wayne Brown, would leave the business.
Brown has been with the group for 12 years and Slater & Gordon recognised the "significant contribution" he has made in that time. However, his departure also follows a tumultuous period for the group in which its shares have shed more than 65% of their market value.
Indeed, Slater & Gordon has been the subject of enormous controversy over the last four months or so. It has been the subject of a major investigation by the Australian Securities and Investments Commission (ACCC) – while many have also questioned its growth tactics and accounting methods.
Although the group's update didn't specifically reference these issues, it's possible that investors are tying all the concerns together and once again questioning the viability in holding the group's shares. Personally, I think it's a risky investment proposition even today and won't be tempted to buy shares just yet.
Slater & Gordon has retained Egon Zehnder to assist in the search for a replacement CFO while Brown will remain with the business for long enough to ensure an orderly transition is made.
