The AGL Energy Limited (ASX: AGL) share price is falling today after news the company’s CEO and managing director is stepping down. Brett Redman has been with AGL for 15 years but said he couldn’t continue as CEO after the company’s structural separation.
The AGL Energy share price is currently trading at $8.88, down 1.99% from yesterday’s closing price.
Let’s take a closer look at AGL’s news this morning.
Upper management shake-up
Redman is resigning from the role of managing director and CEO, effective immediately. He has been with the company for 15 years, holding the top job for the last 2 and a half years.
Filling the role is the energy company’s chair, Graeme Hunt, who will relinquish his duties as chair to take up the position of interim managing director and CEO.
AGL advised that Hunt would lead the company through the planning process of its structural separation. He will be charged with appointing leaders to the company’s 2 new businesses.
AGL non-executive director Peter Botten will fill the role of company chair.
While Redman’s notice is effective immediately, AGL said he would remain available to the company until October, when his notice period expires.
Commentary from an all-new management
Outgoing CEO Redman said he was proud of his contribution to AGL Energy. He added:
I am also pleased to have established the case for the structural separation of the business. The timing of my departure will enable the leadership team to be established to execute upon the separation strategy and lead the business into its next chapter.
Hunt thanked Redman for his service:
Over his time as CEO, Brett has returned the company to growth in its customer base and stabilised relationships with key stakeholders at a time of unprecedented uncertainty in energy policy and market conditions.
In addition, the structural separation strategy Brett has sponsored gives AGL the opportunity to make material progress in our role in the energy transition.
Botten also thanked Redman and said Hunt’s interim role would “provide important continuity of leadership for the business and certainty for our people and shareholders while we work through the considerations of structural separation and establish a platform for future success”.
AGL Energy share price snapshot
The AGL Energy share price is down 27% year-to-date and has fallen 49% over the last 12 months.
The company has a market capitalisation of around $5.6 billion, with approximately 623 million shares outstanding.