The Insignia Financial Ltd (ASX: IFL) share price is having a tough finish to the week.
In morning trade, the ASX 200 financial services company's shares are down 15% to a 52-week low of $1.99.
Why is this ASX 200 share getting hammered?
Investors have been hitting the sell button today after the company announced the exit of its CEO, Renato Mota.
According to the release, Mota plans to leave the company by mutual agreement at the end of February 2024.
Mota has been a key organisational leader with Insignia, formerly known as IOOF, for 20 years. During this time, five years has been served as the company's CEO.
The outgoing CEO believes that now is a good time to move on. He explains:
It's been a privilege to be part of Insignia Financial over the past 20 years and its CEO over the last five. Having established a clear path for the next three years, I feel this is the right inflection point to provide the business with fresh perspective to continue the journey.
Mota also believes he is leaving the company in a good position. However, that hasn't stopped some investors from panic-selling the ASX 200 share sharply lower today. He adds:
To have created an industry leader and purpose-led culture, driven by an ambition to improve the financial wellbeing of all Australians, is something I'll always be proud of. I know I will leave behind an incredibly talented and passionate team who will continue to build the organisation for the benefit of all stakeholders.
Insignia's Chair, Allan Griffiths, revealed that the company's search for a replacement for Mota has begun. He explains:
We have commenced a search for our next CEO to build on these foundations and continue to execute on the opportunities our market position and capabilities currently represent.
Insignia's shares are down almost 70% over the last five years.