The AGL Energy Limited (ASX: AGL) share price has started the week poorly.
In afternoon trade, the energy company's shares are down 2.5% to $6.94.
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Why is the AGL share price falling?
While the AGL share price was already in the red today, it has edged even lower since the release of an announcement during late morning trade.
According to the release, AGL is making key changes to the renewal of its board and management as it prepares to announce the outcomes of its review of strategic direction and confirm guidance later this month.
One of those changes sees AGL's chair, Peter Botten AC, step down from the role with immediate effect today. He is being replaced by current board member Patricia McKenzie.
McKenzie is currently the chair of NSW Ports and the Sydney Desalination Plant group companies. She was also previously the chair of Essential Energy, a director of APA Group (ASX: APA), AEMO, Macquarie Generation, and Transgrid, CEO of the Gas Market Company, and a key participant in the Council of Australian Government's National Energy Reform.
In addition, current non-executive director Diane Smith-Gander AO is stepping down with immediate effect.
Commenting on the exits, Patricia McKenzie said:
I would like to acknowledge and thank Peter Botten for his significant contribution as a member of the AGL Board over the past six years, including as Chairman over a challenging 18 months. I would also like to acknowledge and thank Diane Smith-Gander for her outstanding contribution to the Board over the past six years, including as Chair of the People & Performance Committee.
The company has been through a period of significant change and uncertainty, and I am stepping into the Chair role to provide clear direction and stable experienced leadership as we redesign our energy portfolio and deliver the outcomes of the review of strategic direction.
What else?
Another major change will see AGL's CEO, Graeme Hunt, step down from the role at the end of the month.
He will be replaced on an interim basis by current CFO Damien Nicks. Finance and energy executive Gary Brown will act as interim CFO during until a permanent CEO is appointed. AGL advised that there is currently a short list of Australian and global candidates.
McKenzie also commented on Hunt's exit. She said:
Graeme will leave the company at the end of the month having led with deep commitment and professionalism through an extraordinary time of change.
