Nuix (ASX:NXL) share price charges higher after announcing CEO and CFO exits

This embattled software company is making some big changes…

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The Nuix Ltd (ASX: NXL) share price is charging higher today after announcing major changes in its leadership.

At the time of writing, the investigative analytics and intelligence software provider’s shares are up 4% to $2.76.

Why is the Nuix share price rising?

This morning the embattled software company announced the exit of both its Chief Executive Officer (CEO) and its Chief Financial Officer (CFO).

Traditionally, such major changes at the top will lead to selling by investors. However, with Nuix performing so poorly since its IPO last year and downgrading its guidance multiple times, based on the Nuix share price performance today, it appears as though the market is cheering on these changes on this occasion.

According to the release, CEO Rod Vawdrey has revealed that he intends to retire from the role. However, Mr Vawdrey will continue in the role while an international search is conducted for a new CEO to lead Nuix on the next phase of its journey and to allow for an orderly leadership transition.

Whereas the company’s CFO, Stephen Doyle, has had his employment terminated by mutual agreement with effect from 30 June. Nuix has revealed that Chad Barton will step in as interim CFO from Monday 21 June.

And while Mr Doyle retains no operational duties, he will be available in the coming weeks to work on an orderly handover of his responsibilities. A global search for a permanent CFO has been initiated by the company.

Management commentary

Commenting on the exit of Rod Vawdrey, Nuix Chair, Hon Jeff Bleich, said: “Rod’s decision reflects his deep commitment to Nuix and love for the company. Rod has agreed to remain at least through the announcement of end of year results, and throughout the process required to find the right replacement to ensure the smoothest possible transition.”

“Nuix is a great company with world leading technology, an extraordinary portfolio of clients, and an incredibly passionate and committed team of employees. We are confident that the pool of candidates will be a deep one and the Board is very focused on attracting the right individual to take on the role.”

Mr Vawdrey commented on the appointment of Chad Barton as interim CFO and appears to believe the company’s finances are in safe hands.

He said: “I am delighted that someone of Chad’s calibre and extensive listed company experience is joining Nuix as interim Chief Financial Officer. Chad brings deep capital market relationships and a strong understanding of financial reporting and systems. He will lead a committed and highly capable team of finance professionals.”

The Nuix share price is still down 68% since the start of the year.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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