Megaport share price jumps on CEO news

Megaport has found its new leader.

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Key points

  • Megaport has found its new CEO after the sudden departure of Vincent English earlier this month
  • The company's new leader has plenty of experience and joins from Cisco
  • However, Megaport has also revealed that its CFO is leaving with immediate effect

The Megaport Ltd (ASX: MP1) share price is pushing higher on Tuesday.

In afternoon trade, the network services company's shares are up 2.5% to $4.15.

Why is the Megaport share price rising?

The Megaport share price is rising today after the company acted swiftly to appoint a new chief executive officer (CEO) following the shock departure of Vincent English earlier this month.

According to the release, the company has appointed Michael Reid as its new CEO, effective 15 May.

Reid joins Megaport from Cisco, where he currently serves as chief revenue officer for ThousandEyes, one of Cisco's fastest growing SaaS businesses.

The release notes that during his time with ThousandEyes, Reid transformed the organisation's go-to-market efforts and helped grow the business into the largest cloud, SaaS, and internet visibility platform in the world.

In addition, Megaport's new CEO expanded the ThousandEyes team from 150 personnel to nearly 400, grew ARR by 2.4 times, and extended the business into new regions across the globe.

Megaport's founder and chair, Bevan Slattery, was pleased with the appointment. He commented:

We are thrilled to welcome Michael as the new CEO of Megaport. Michael is a proven technology growth leader with deep experience in developing and leading multiple global recurring revenue SaaS businesses. His expertise and drive will be pivotal to strengthening Megaport's go-to-market strategy and product roadmap and leading the Company into its next stage of growth.

One in, one out

However, taking some of the shine off the appointment is news that there has been another big change in the Megaport c-suite.

The company has revealed that its CFO, Sean Cassidy, is leaving his position with immediate effect. Ms Leticia Dorman will be appointed as interim CFO while the company undertakes a global executive search.

Motley Fool contributor James Mickleboro 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 Megaport. The Motley Fool Australia has recommended Megaport. 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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