The Bank of Queensland Ltd (ASX: BOQ) share price is falling heavily on Monday.
In morning trade, the regional bank's shares are down over 6% to $7.07.
Why is the Bank of Queensland share price sinking?
The weakness in the Bank of Queensland share price on Monday has been driven by surprise news that the bank's CEO is stepping down from the role with immediate effect.
According to the release, a domestic and international executive search for a new managing director and CEO is commencing to find a replacement for George Frazis, who leaves the company effective today and without comment.
The bank explained that it felt that now was the right time for a change of leadership.
What now?
Bank of Queensland's chair, Patrick Allaway, has taken on the role of executive chairman for the period of the executive search.
The bank notes that appointing Mr Allaway as executive chairman is designed to retain stability and will ensure that the executive leadership team can stay focused on their current roles and responsibilities.
Current non-executive director, Karen Penrose, will be the lead independent director during this period.
'Different leadership is now required'
Bank of Queensland's executive chairman revealed that the board decided that a change of leadership was required to take the bank forward. Allaway commented:
George Frazis joined BOQ in September 2019 and has overseen a return to growth in all key channels across the Bank, the successful acquisition and integration of ME Bank, as well as achieving strong progress in the Bank's technology transformation.
However, the Board has formed a view that different leadership is now required to ensure BOQ can continue to build a stronger and more resilient bank through future cycles. We thank George for his significant contribution to BOQ over the past three years.
The executive search is expected to take upwards of nine months.
