The Sigma Healthcare Ltd (ASX: SIG) share price has come under pressure on Monday morning.
At the time of writing, the pharmacy chain operator and distributor's shares are down 3.5% to 66.5 cents.
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Why is the Sigma share price tumbling?
Investors have been heading to the exits on Monday after Sigma announced that its Managing Director and Chief Executive Officer (CEO), Mark Hooper, has tendered his resignation after almost 11 years at the helm.
According to the release, Mr Hooper has provided six months' notice and expects to leave the company by the end of October 2021.
The outgoing CEO commented: "Our transformation has progressed to plan and has returned Sigma to a position of strength, which creates the ideal opportunity to hand over the leadership to a new CEO. The business is now in great shape, the financial performance is strong, and we have built a platform for sustainable growth over the next few years."
"Position of strength"
Mr Hooper certainly is leaving Sigma in a position of strength. Last month Sigma released its full year results and revealed a 39.2% increase in underlying EBITDA to $81.1 million.
It also revealed the "building blocks in place" to underpin its target of 10% per annum growth in underlying EBITDA for the next two years and ~$100m by FY 2023.
Sigma's Chairman, Ray Gunston, said "On behalf of the Sigma Board, I have regrettably accepted Mark's resignation, however we understand his desire to pursue other opportunities after more than ten years in the role. He has demonstrated strong leadership and personal dedication for the benefit of shareholders, customers and Sigma team members. I sincerely thank Mark for his tremendous contribution throughout his tenure."
"Mark became CEO at a tough time for Sigma and put it on a pathway for a stronger future. He then undertook the biggest transformation in the company's history and has set Sigma up for strong earnings growth. I personally, and all of us at Sigma, are very grateful for Mark's hard work, vision and support over more than 10 years," Mr Gunston concluded.
Sigma advised that it will shortly commence an executive search for a new CEO both internally and externally.
