This morning, Corporate Travel Management (ASX: CTD) announced that its Chief Executive Officer, Greg McCarthy, would be stepping down.
Corporate Travel management's share price opened 3.47% lower this morning, suggesting the market may not favour this transition. At the time of writing, shares are trading hands for $14.45.
Founded in 1994, Corporate Travel Management provides travel management solutions in Australia, New Zealand, North America, Asia, and Europe.
McCarthy has led the business since 2018, having joined after Corporate Travel acquired parts of Platinum Travel Management, a business he co-founded.
While the travel company offered no reason for McCarthy's departure, it did announce his replacement.
Jo Sully, former executive at American Express, will succeed McCarthy. Sully will join Corporate Travel on 5 May, with McCarthy remaining in the role until 30 June to enable a smooth leadership transition.
Commenting on the leadership transition, Corporate Travel Management Founder and Managing Director Jamie Pherous noted:
[McCarthy's] leadership has enabled the business to navigate periods of significant disruption and change, and come out stronger, more connected, and more valued than ever before.
Replacing McCarthy in the CEO Australia & New Zealand role is former AMEX GBT General Manager and Regional Vice President APAC Sully, who brings extensive experience leading a large corporate travel businesses across APAC. With a proven track record of implementing wide-scale innovation projects that drive operational efficiency, client growth and retention, Sully is a people leader, renowned for building high-performing teams that deliver transformative results.
Jo is well known to many inside CTM and her skill-set is aligned to execute to strategy.
How has Corporate Travel performed?
Last month, Corporate Travel Management reported a 33% decline in underlying net profit after tax and a 6% decline in half-year revenue. While the performance of its ANZ and North America operations remained strong, Asia and Europe were the detractors. Most significantly, its European operations, which wound down one-off war-related projects from FY 2024, were a major drag on the result.
The company also slashed its dividend, paying an interim dividend of 10 cents, down from 17 cents the year prior.
Pleasingly, the company retained 97% of existing clients and gained new client wins with an estimated total transaction value (TTV) of $600 million.
Looking forward, the company flagged earnings growth for the second half, giving investors plenty to be pleased about.
What's next?
Under McCarthy's leadership, Corporate Travel Management's share price has increased by an impressive 85%. Shareholders will be hoping incoming CEO Jo Sully will leverage her extensive industry experience to take the business to new heights.
