Trifecta exit: Fortescue shares tumble as more executives walk away

The Fortescue share price is down more than 5% on Friday morning.

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Fortescue Metals Group Ltd (ASX: FMG) shares are taking a tumble on Friday.

The S&P/ASX 200 Index (ASX: XJO) mining stock closed yesterday trading for $21.43 a share. In morning trade today, Fortescue shares are swapping hands for $20.28 apiece, down 5.4%.

That's a far steeper fall than the 0.42% loss posted by the ASX 200 at this same time. And it's more than 10 times the 0.48% decline on the S&P/ASX 200 Resource Index (ASX: XJR).

ASX 200 investors may be bidding down Fortescue shares following the announcement of yet another top executive resignation.

An older woman with grey hair and wearing glasses looks at her laptop screen with her hand outstretched to demonstrate that she doesn't understand what she is reading

Image source: Getty Images

What's happening with the top brass at the ASX 200 miner?

It's looking more and more like a revolving door at the executive level of the big miner.

In what could be the reason for the big selldown in Fortescue shares today, former Reserve Bank of Australia (RBA) deputy governor Guy Debelle has resigned as non-executive director of Fortescue Future Industries (FFI).

Debelle has left his position at FFI, Fortescue's green energy branch, to join the board of emerging vanadium miner Tivan Ltd (ASX: TVN) as non-executive director.

The Tivan share price is up 19% at time of writing on the news.

Commenting on his move, Debelle said, "I am excited to join Tivan who are focused on realising the great opportunity Australia has in the green transition, particularly in the critical minerals space."

Debelle's departure marks the third high-level exit from the ASX 200 miner in just a week.

After market close yesterday, potentially impacting Fortescue shares today, the company announced the departure of Fortescue Metals chief financial officer Christine Morris. Morris had been CFO for two months.

Management advises that Fortescue's group manager finance and tax Apple Paget has been appointed acting CFO.

And last week, investors learned that Fiona Hick had quit her position as Fortescue Metals CEO, after only taking up the reins in February.

Fortescue has since announced the appointment of Dino Otranto as CEO.

Otranto joined Fortescue in 2021 as chief operating officer iron ore.

Commenting on Hick's resignation, Fortescue founder Andrew Forrest said, "We thank Fiona for her valuable efforts since joining Fortescue just under six months ago and wish her all the best with her future pursuits."

And Forrest welcomed Otranto aboard:

We welcome Dino to the role of chief executive officer where he will continue to lead and grow the metals business, deliver our major project in Gabon and execute our decarbonisation plan.

Hick looked to be leaving the position amicably.

She said, "It's been wonderful to work with the dedicated people at Fortescue. I am thankful for the opportunity and wish Fortescue well in its mission to decarbonise."

How have Fortescue shares been tracking longer-term?

Despite today's big retrace, Fortescue shares remain up 15% over the past 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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