Sigma (ASX:SIG) share price tumbles after CEO resigns

The Sigma Healthcare Ltd (ASX:SIG) share price is sinking lower today after the surprise exit of its CEO after over a decade in the role….

Businessman walks through exit door signalling resignation

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Arcadium Lithium, Block, Jumbo, and Mineral Resources shares

These shares are ending the week in the red. Why are investors selling them?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Clearview, NAB, Resolute Mining, and Westpac shares are dropping today

These shares are under pressure today. But why?

Read more »

A man looking at his laptop and thinking.
Bank Shares

Why is the Bendigo Bank share price tanking today?

There are a few things that could be driving this bank lower today.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Bellevue, Domain, Skycity, and Wildcat shares are tumbling today

These shares are having a tough time on hump day. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Domino's, Lynas, Paladin Energy, and St Barbara shares are sinking today

These shares are having a tough session. What's going on?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Amcor, Boss Energy, Brickworks, and Mineral Resources shares are tumbling today

These shares are starting the week in the red. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »