This ASX tech stock is crashing 19% on shock CEO exit

This tech stock's CEO is leaving later this week. Let's find out what is happening.

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Key points

  • This tech share is on the move on Monday due to CEO Jonathan Rubinsztein's announced departure by the end of October.
  • The Board and outgoing CEO both express confidence in Nuix's strong position for future growth, despite the leadership transition.
  • The interim CEO, John Ruthven, a seasoned leader with a background in enterprise software, steps in on November 3 amidst a global search for a permanent successor.

Nuix Ltd (ASX: NXL) shares are taking a deep bath on Monday morning.

At the time of writing, the ASX tech stock is down a disappointing 19% to $2.36.

Why is this ASX tech stock crashing deep into the red?

The catalyst for today's selling is news that the investigative analytics and intelligence software provider's CEO is stepping down by the end of the week.

According to the release, Nuix's CEO, Jonathan Rubinsztein is stepping down at the end of October after agreeing with the board that now is the right time to seek new leadership for the next leg of its growth journey.

Commenting on the news, Nuix's chair, Robert Mactier, said:

With the Company on a solid footing and well positioned for growth, the Board and Jonathan have agreed that it is now the right time to seek new leadership for the next leg of our growth journey. We collectively wish Jonathan well in his future endeavours.

The Board is very appreciative of Jonathan's contribution and commitment to the evolution of the company, his passion for Nuix's people and products and his strategic leadership during his time with Nuix.

Speaking about his exit later this week, Mr Rubinsztein commented:

I feel proud and privileged to have led such an incredibly talented team of gifted people at Nuix over the past four years. Together we have achieved much – a complete turnaround of the business from corporate structure to the development of our world-class platform Nuix Neo to earning confidence and support from our customers. The Company is perfectly poised for an exciting and successful future. I thank the Board for having given me the opportunity.

Interim appointment

In a separate announcement, the ASX tech stock revealed that it has made an interim CEO appointment.

According to the release, former Integrated Research Ltd (ASX: IRI) CEO, John Ruthven, will join the company on 3 November and lead it for a period of up to 12 months. This is whilst the company undertakes a full global search for a new permanent CEO.

Prior to his time at Integrated Research, Ruthven worked at enterprise software provider TechnologyOne Ltd (ASX: TNE), Zuora Inc, and CA Technologies.

Commenting on the appointment of Ruthven, Mactier said:

We look forward to welcoming John to Nuix and having him working alongside our outstanding senior leadership team.

Motley Fool contributor James Mickleboro has positions in Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended Nuix and Technology One. 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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