There's been a bit of buying interest in this beaten-down ASX tech stock on Monday following a new leadership announcement.
At the time of writing, Nuix Ltd (ASX: NXL) shares are up 3.69% to $1.545.
While positive momentum is taking charge today, the stock still remains down about 40% over the past 12 months.
Here's what just came through.
Image source: Getty Images
CEO role locked in after global search
Nuix announced it has appointed John Ruthven as its Chief Executive Officer and Managing Director on a permanent basis, effective immediately.
Ruthven had been serving as interim CEO since November last year. The board ran a global search before settling on him as the preferred candidate.
According to the company, the decision came after reviewing his performance, skill set, and understanding of the business.
Chair Robert McLister said the board had been impressed with Ruthven's approach during the interim period, pointing to his engagement with staff and customers.
Ruthven also backed the direction of the business, saying his time in the role strengthened his confidence in Nuix's technology and people.
What this means from here
Nuix has been through a difficult stretch over recent years, including volatility in earnings and ongoing efforts to rebuild trust with investors.
Locking in a permanent CEO at least gives the market a clearer idea of who is actually running the business and where things are headed.
It also suggests the board is comfortable with the direction so far, rather than feeling the need to bring someone in to change course.
This could help steady things and allow the business to focus on getting back on track.
Pay and incentives
Alongside the announcement, the company advised that Ruthven will receive fixed annual compensation of $900,000, excluding superannuation.
He is also eligible for short-term incentives from July, with a target set at 60% of fixed pay, rising to 1.25 times for outperformance.
Long-term incentives are set at 100% of fixed pay and will be delivered as performance rights.
Furthermore, there is scope for a discretionary bonus linked to his time as interim CEO.
Foolish Takeaway
Ruthven has already been running the business for several months, so I would expect things to continue along the same path.
Removing the uncertainty around leadership appears to be helping short-term sentiment, especially after a long stretch of share price weakness since October last year.
From here, I would be watching how the business performs, particularly around growth and achieving consistent results.
