The Afterpay Touch Group Ltd (ASX: APT) share price will be on watch on Tuesday after the payments company announced sweeping changes to its board and executive leadership.
What was announced?
To reflect its current market position and future growth opportunities, Afterpay Touch advised that it is making important organisational and governance changes to support the pursuit of its mid-term strategy and continue to deliver value to its shareholders.
One change the company is making is the transition to a majority independent board with an independent chair.
A global search is about to commence to recruit at least two additional independent directors that will complement the skillset of the existing directors and reflect the globalisation of Afterpay as a business.
But arguably the biggest change will see co-founder, Anthony Eisen, assume the role of CEO and managing director of the company. He will focus on managing the global business and overseeing the management of the company's operations.
This means that fellow co-founder and current CEO, Nick Molnar, will become the company's Global Chief Revenue Officer, reporting to Mr Eisen. He will also maintain a global leadership role with a particular focus on managing the US business and global merchant relationships.
The role of Group Head, held by David Hancock, will come to an end. This is in-line with the review timing stipulated in Mr Hancock's employment agreement. He will also step down from the board at the end of the financial year, but will facilitate the transition of his role to the CEO and managing director and other members of the leadership team for a period of up to 12 months.
Furthermore, the company has revealed the appointment of Frerk-Malte (Malte) Feller from Facebook in a newly created Global Chief Operating Officer role, effective July 1. Feller has previously worked with eBay and PayPal. The latter included time as managing director of PayPal's Australian operations.
The company's new CEO, Anthony Eisen, believes the changes will help the company fulfil its potential.
He said: "The proposed changes will enhance our governance and appropriately position the business and its leadership team to continually innovate and fully realise the global opportunity before us."
He added: "These changes represent a significant new phase in the Company's evolution and strengthens our organisational platform as we continue to build our domestic and international presence. We feel privileged to have a strong leadership team that continues to expand, providing the Company with the necessary skills across a range of important disciplines which are essential to the Company's future success."
