Shares in S&P/ASX 200 Index (ASX: XJO), former market darling A2 Milk Company Ltd (ASX: A2M) are tumbling on Tuesday. The fall comes amid news the company is undergoing an executive shakeup.
The heads of two of its segments – its USA business and Mataura Valley Milk – will step down, while other executives will be shuffled to fill newly-emptied positions.
The A2 Milk share price is tumbling 1.5% at the time of writing to trade at $5.27.
For comparison, the ASX 200 is also in the red today, falling 0.28%.
Let's take a closer look at the changes going down among the top dogs of A2 Milk.
Former market darling announces leadership shuffle
The A2 Milk share price is sliding today amid news the CEO of its USA business, Blake Waltrip, is stepping down, effective immediately. Waltrip has headed the business for seven years.
He will be succeeded by the current executive general manager of the company's Australia and New Zealand (ANZ) arm, Kevin Bush. Bush's new title will see him introduced as managing director of the USA business.
On account of Bush's relocation, the company's current chief strategy officer, Eleanor Khor, will take on extra responsibilities and a new title — managing director of ANZ and strategy.
Commenting on the news seemingly weighing on the company's shares today, A2 Milk managing director and CEO David Bortolussi thanked Waltrip, continuing:
Blake has led the development of our USA business, successfully establishing the a2 Milk brand in the market, achieving nationwide distribution and expanding our product offering during that time.
I congratulate Kevin and Eleanor on their new roles and believe their leadership will make a difference to the growth and performance of our USA and ANZ businesses going forward.
But that's not all.
CEO of Mataura Valley Milk Bernard May has also stepped down after seven years with the company.
His resignation sees John Roberts appointed as interim general manager at the business.
Roberts will support A2 Milk chief supply chain officer Chopin Zhang to transform the company's supply chain. Their focus will be on developing its infant milk formula manufacturing capability and utilisation.
A2 Milk share price snapshot
Today's slump is just the latest to dint the A2 Milk share price.
The stock is currently 22% lower than it was at the start of 2023. Though, it has gained 31% since this time last year.
Meanwhile, the ASX 200 has climbed 4% year to date and 2% over the last 12 months.
