The Metcash Limited (ASX: MTS) share price has dropped by over 4% so far today after the company announced that Steven Cain had resigned from his position as chief executive of the supermarket and convenience segment of Metcash's business.
Metcash's market release said that over the past three years Mr Cain has been commuting from his home in Melbourne to Sydney. Mr Cain has advised Metcash that he has accepted a position based in Melbourne.
That new position for Mr Cain will be the new Coles company which will be separated from Wesfarmers Ltd (ASX: WES), if it's given the go-ahead by shareholders.
The new Chief Executive of the supermarket & convenience pillar will be Scott Marshall. He has been the leader of the liquor business for the past four years and has been with Metcash for more than 25 years getting wholesale and retail experience. Mr Marshall used to lead the Western Australian operations for supermarkets.
The Metcash Group Chief Executive Officer, Jeff Adams, said "We understand Steven's decision to be based in Melbourne and thank him for his contribution in his role as CEO of Supermarkets & Convenience.
"We are fortunate to have a strong leadership team, and Scott is well placed to take over as the CEO of supermarkets & convenience."
Rod Pritchard, who is currently general manager of merchandise for the liquor segment, has been appointed interim Chief Executive of liquor.
Foolish takeaway
I can see why the market didn't like this announcement. Metcash has really turned a corner since mid-2015, with the share price growing by almost 200% since the low. One man is not the key to Metcash's business, but it will need to reassure shareholders that things are going to plan with his departure.
