The Magellan Financial Group Ltd (ASX: MFG) share price is edging higher today.
At the time of writing, the struggling fund manager's shares are up 1.5% to $15.99.
This means the Magellan share price has narrowed its year to date decline to 64%.
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What's going on with Magellan share price?
Investors have been bidding the Magellan share price higher today despite the release of an update on its Founder and ex-Chairman, Hamish Douglass.
In case you weren't aware, Mr Douglass has been on indefinite leave from the role of Chairman since early in February. This followed a period of intense pressure and focus on both his professional and personal life.
At the time, the Magellan Board advised that they were supportive of Douglass taking the time that he requires to focus on his health and were looking forward to welcoming him back.
However, today's bombshell announcement reveals that Hamish Douglass will not be returning as a Magellan director. The release advises that with effect from 19 March 2022, Douglass has resigned from the Magellan Board.
And given how the Chairman role and the board generally go hand in hand, this could be a sign that he will not be returning as Chairman in the future. Though, that has not been confirmed.
Magellan advised that Mr Douglass said his resignation as a director of the Magellan Board is due solely to his medical leave of absence. The Board is continuing its search process to appoint an additional independent director.
Why are its shares rising on the news?
Judging by the Magellan share price performance today, it appears as though the market was already anticipating this and had priced it in.
Though, it is also worth noting that Magellan has just launched a major on-market share buyback. This offers some downside protection, with the brokers entrusted to buy shares, Barrenjoey and Ord Minnett, able to take advantage of any selling on the news today.
