The CSL Limited (ASX: CSL) share price is in the red on Tuesday amid news the company's CEO will step down in the new year.
As The Motley Fool Australia reported earlier, the biotechnology company's long-term CEO Paul Perreault will be succeeded by current chief operating officer (COO) Dr Paul McKenzie.
Unfortunately, the market appears to have reacted poorly to the news. After opening Tuesday's session 0.01% higher at $298.23, the CSL share price tumbled to a low of $295.31 – marking a 0.97% fall.
It has since recovered some of that slump to trade at $296.87 at the time of writing. That's 0.45% lower than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is in the green today, lifting 0.6%. Meanwhile, the company's home sector, the S&P/ASX 200 Health Care Index (ASX: XHJ), is underperforming, rising just 0.04%.
Let's take a closer look at today's news from the 107-year-old healthcare giant.
CSL share price struggles amid CEO succession news
The CSL share price is falling on Tuesday amid news of an upcoming changing of the guards.
Perreault, who will have helmed the company for 10 years by the time he steps down in March, will pass the baton to COO and 30-year industry veteran McKenzie.
McKenzie has been with CSL since 2019. According to today's release, in his time with the company he has transformed CSL's global end-to-end operations, advanced CSL Seqirus' differentiated portfolio strategy, and led CSL Plasma through COVID-19 challenges.
McKenzie will boast a fixed US$1.75 million salary. Short-term incentive targets could see that jump 120%, while long-term incentives – to begin in finanical year 2024 – could see the figure 425% higher.
The company's chair Dr Brian McNamee commented on McKenzie's appointment to the top job, saying:
Paul McKenzie is a patient-focused global leader with a demonstrated track record of leading complex organisations and delivering outstanding business results.
With his deep understanding of CSL's strategy, culture and operations, Paul is well positioned to lead CSL to its next level of sustainable growth for our shareholders and the patients we serve around the world.
Today's fall included, the CSL share price is trading relatively flat year to date.
