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Bank of Queensland share price falls on CEO resignation

Credit: BOQ

The Bank of Queensland Limited (ASX: BOQ) share price has tumbled lower on Wednesday after the surprise resignation of its managing director and chief executive officer, Jon Sutton.

At the time of writing the regional bank’s shares are down over 2.5% to $9.64, putting them within sight of their 52-week low of $9.39.

Why has the bank’s CEO resigned?

According to the announcement, after six years with the bank, Mr Sutton has resigned in order to focus on his long-term health following a heart operation earlier this year.

The bank’s current chief operating officer, Anthony Rose, will step in as interim CEO while a national and international executive search is completed.

The bank’s chairman Roger Davis said “We understand and respect Jon’s decision to resign now, so as to focus on his health and be in great shape to return to corporate life when it makes sense for Jon and his family. We thank Jon for his loyalty, dedication and significant contribution since he joined BOQ as our Chief Operating Officer in 2012 before stepping up into the role of Managing Director & CEO in 2015 and wish him all best for the future.”

He also talked up Mr Rose’s abilities and appears delighted to have him step into the role on an interim basis.

Mr Davis said: “We are also glad to have someone of the calibre of Anthony to assume the role of Interim CEO whilst we conduct the search for Jon’s successor. Given Anthony’s experience and knowledge of the business, we have no doubt that it will be business as usual during the search period.”

What now?

While it is disappointing to see Mr Sutton go, I suspect it will be business as usual for the bank under its new leadership.

In light of this, I wouldn’t change my view of the company on today’s news. In fact, if you liked the bank prior today, you may like it even more now its shares have dropped lower.

My preference remains Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), but Bank of Queensland could be worth a closer look at these levels.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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