The A2 Milk Company Ltd (ASX: A2M) share price is trading lower on Tuesday morning.
At the time of writing, the struggling infant formula company’s shares are down 0.5% to $4.11.
Why is the A2 Milk share price falling?
The weakness in the A2 Milk share price on Tuesday appears to have been driven by news of the sudden exit of one of the company’s executives.
According to the release, Race Strauss has resigned from his position of Chief Financial Officer (CFO) to take some personal leave before pursuing other interests.
Mr Strauss will step down from his role immediately but will remain available to support the company through the FY 2022 year-end process and to assist with an orderly transition to a new CFO.
Though, A2 Milk has acted extremely fast and has found a replacement already. The company has appointed David Muscat as its new CFO, effective in October.
Mr Muscat is currently the CFO of DIM Brands International (formerly Hanes Europe Innerwear), and prior to this was the CFO of Hanes Australasia.
In the meantime, the company’s current Group Head of Finance – FP&A and Risk, Mark Sherwin, will assume the position of interim CFO from today until David Muscat commences in the role.
A2 Milk’s Managing Director and CEO, David Bortolussi, commented:
Race has been a key member of the Executive Leadership Team and has played an important role in our turnaround journey and navigating the business through the pandemic. During his tenure, Race has built capability in the Finance and IT functions, including the implementation of a new ERP system. I would like to express my thanks to Race for his dedication and contribution to a2MC, and we wish him all the best in his future endeavours.
I am delighted to have the opportunity to work with David Muscat again and to welcome him to a2MC. He is a capable and experienced finance and people leader, who I am sure will make a valuable contribution to our strategy and execution going forward. I also want to thank Mark Sherwin for stepping into the Interim CFO role. Mark is highly regarded in our company and known to many of our investors through his previous Investor Relations role.