Tabcorp Holdings Ltd (ASX: TAH) shares are under pressure on Friday.
In morning trade, the ASX 200 gambling stock is down 3% to 74 cents.
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Why is this ASX 200 stock falling?
Investors have been hitting the sell button today after the company revealed the sudden exit of its CEO, Adam Rytenskild.
According to the release, Rytenskild has resigned and is stepping down immediately as managing director and CEO of Tabcorp after a probe into inappropriate and offensive language in the workplace.
The Tabcorp board commented:
The Board considered the language to be inconsistent with Mr Rytenskild's continued leadership of the organisation and following discussion with the Board, Mr Rytenskild has tendered his resignation and will step down immediately.
The company advised that it expects its leaders to uphold company values at all times and will not hesitate to take action to uphold expected standards of conduct.
But what exactly was said will not be revealed. In order to protect the privacy of those involved, Tabcorp does not intend to make any further comment in relation to the conduct.
Commenting on his exit, Rytenskild said:
I don't recall making the alleged comment and it's not language I would usually use, but I have regrettably agreed to resign. Tabcorp has been an enormous part of my life for many years and I believe in the journey the company is on.
What now?
The ASX 200 stock has appointed Maritana Partners to commence a global search for a new managing director and CEO.
In the meantime, the company's chair, Bruce Akhurst, has agreed to take on additional duties as executive chairman with immediate effect. This is subject to any applicable regulatory approvals.
The new executive chair commented:
The Board regrets that Mr Rytenskild's employment has ended in this way and acknowledges his commitment to Tabcorp's growth over more than two decades, including the last two years as MD & CEO and his contribution to the transformation of the company. Today's change does not impact the strategic direction of the company. We have the depth and capability across the executive and the senior leadership team to continue our transformation.
Following today's weakness, the Tabcorp share price is now down 25% over the last 12 months.
