The Tyro Payments Ltd (ASX: TYR) share price has come under significant pressure on Wednesday.
In morning trade, the payments company’s shares are down 20% to a new record low of 62 cents.
Why is the Tyro share price sinking?
As well as broad weakness in the tech sector, the Tyro share price has been hit by news that its CEO is stepping down.
According to the release, the company’s CEO and managing director, Robbie Cooke, has provided six months’ notice, concluding close to five years of leadership at Tyro.
A separate announcement out of Star Entertainment Group Ltd (ASX: SGR) reveals that Cooke is joining the casino and resorts operator as its new leader.
Tyro’s board has revealed that it will immediately commence an executive search process, canvassing both internal and external candidates to identify a suitable CEO successor. Cooke has committed to work with Tyro’s board to ensure a smooth transition.
Tyro’s chair, David Thodey, commented:
The Board and I would like to thank Robbie for his contribution to our business and wish him all the best for his next chapter. We remain committed to providing outstanding customer service to our merchants and partners through innovative products and technology, driving operating leverage, and accelerating our move to become free cash flow positive.
Commenting on his appointment as Star’s new CEO, Mr Cooke said:
I am delighted to have the opportunity to re-join the gaming and hospitality industry, which is a passion of mine and where I have spent the majority of my career.
There are challenges for The Star that have been well documented. They will be my priority and focus. Ensuring continuity of the business through a comprehensive renewal program is of paramount importance. This is also an incredibly resilient business with thousands of team members providing the commitment, enthusiasm and inspiration that helps deliver outstanding customer service.