EML share price sinks 18% amid CEO's unexplained departure

Shares in the payments company are having a shocker of a day.

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Key points

  • EML Payments shares freefall 18% during early morning trade
  • The company announced an immediate change in leadership of its managing director and CEO
  • Tom Cregan is departing the company while Emma Shand will take over the helm

The EML Payments Ltd (ASX: EML) share price is one of the worst performers on the ASX today.

This comes as the company announced the departure of its managing director and CEO Tom Cregan with no reason given.

At the time of writing, the payments company's shares are trading at a multi-year low of $1.045, down 18.36%.

EML Payments shares freefall

EML Payments advised that it has appointed Emma Shand as its managing director and CEO, effective immediately.

This sudden news over the quick change in leadership has evidently shocked investors.

The company stated that Shand brings 25 years of global experience in technology, capital markets, and diversified financial services.

Most notably, she spent more than 16 years in senior management roles with US-based index, Nasdaq.

EML Payments chair Peter Martin touched on the appointment saying:

This is an exciting time of opportunity for EML, and Emma has an ideal set of attributes to lead the company into the future. Emma will provide highly professional leadership through a period of very rapid change.

Emma has served as a member of the EML Board of Directors since September 2021. She brings a deep appreciation of the exciting growth opportunities ahead for EML in a world rapidly transitioning to digital payments. Importantly, she has a very impressive track record initiating and overseeing complex, transformational change.

Due to of EML Payment's significant European business, Shand will mostly spend her time and run operations from there.

EML Payments noted that Cregan will receive his contractual entitlements but no termination benefits will be provided.

About the EML Payments share price

The latest share price slump won't bode well for EML Payments shareholders.

Its shares are down more than 72% since this time last year and continue to be dragged lower by tough trading conditions.

EML Payments has a market capitalisation of roughly $394 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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