Shares in Cleanaway Waste Management Ltd (ASX: CWY) are plummeting today following an announced change in the company's leadership team. During late morning trade, the Cleanaway share price was down a sizeable 7.88% to $2.40.
What's driving the Cleanaway share price lower?
The Cleanaway share price is on the slide today after the company advised that its CEO and Managing Director, Mr Vik Bansal, will step down.
Cleanaway revealed that the departure of Mr Bansal comes as no surprise since management had been previously discussing succession plans for some time. The company stated Mr Bansal took the holiday period to reflect on his priorities and brought his resignation forward upon his return.
Having served as CEO since August 2015, Mr Bansal will use the next few months to commence the leadership transition. It is expected the process will be concluded some time within the first half of the 2021 calendar year.
Cleanaway Executive Chair Mr Mark Chellew will take on extra duties for the period until a new permanent CEO is found.
In addition, Cleanaway Chief Financial Officer (CFO) Mr Brendan Gill will delay his retirement plans to take on the role of chief operating officer. From there, Mr Gill will assist Mr Chellew with interim CEO responsibilities as well as support Mr Paul Binfield as the new incoming CFO.
Management commentary
Cleanaway Chair Mr Mark Chellew recognised Mr Bansal for his contribution to the company, saying:
We thank Vik for his contribution in achieving a significant turnaround of Cleanaway over his period as Chief Executive Officer. Vik has led Cleanaway's transformation and growth with enormous dedication, and it shows in the company's financial results. We thank him for his service and wish him all the very best for the future.
Adding to Mr Chellew's comments, Mr Bansal, went on to say:
I am extremely proud of the transformation of Cleanaway into Australia's leading waste management business. We have created significant value for shareholders through refocusing the business, consolidating under one brand, successfully integrating the ToxFree acquisition, and targeted investment in the best-in-class infrastructure, facilities, and extending our participation in the waste value chain.
