The Metcash Limited (ASX: MTS) share price is sliding lower this afternoon. The shares are now changing hands at $3.98 apiece, down 0.74%.
Metcash shares are on the move as the company announced a key management restructure earlier today. Here's what we know.
Image source: Getty Images
What did Metcash announce?
Metcash advised its Group CEO, Jeff Adams, informed the board of his intention to retire from the wholesale distribution company's top gig.
The release says Doug Jones, "currently CEO and senior vice president of South African-based Massmart Wholesale", will step into the role next year.
Adams originally joined Metcash in 2017 as CEO, and the company said it has "seen significant transformation and growth" during his tenure.
Adams' MFuture program was successful in navigating the company through the pandemic so far, "and was a key driver of record company sales in FY21".
The appointment of Jones follows a "well managed process, including a thorough global search instigated by the board".
Jones is an experienced executive with extensive wholesale, retail, and eCommerce experience. Massmart group, a listed company on the Johannesburg Stock Exchange, has been Jones' home for the past 14 years. It is majority-owned by Walmart.
The exchange of the old and the new will occur on 1 February 2022. The pair will work together to ensure a smooth transition.
Investors don't appear to like the news, but they certainly don't appear spooked by it either. The Metcash share price is currently trading 0.74% lower from the open at the time of writing.
Management commentary
Speaking of the CEO's resignation, Metcash chair Rob Murray said:
The demands on Jeff through COVID have been considerable and were a factor in his decision to retire as Group CEO. His endurance and resilience during this period, which included not being able to see his US-based family, have been amazing. The board and our stakeholders greatly appreciate Jeff's dedication and efforts, and we wish him all the best for his return to the US and his family.
Regarding the appointment of Doug Jones, and the value this can bring to Metcash, Murray added:
Doug's extensive and distinguished international experience across wholesale, retail and eCommerce markets made him the standout candidate to succeed Jeff. He is passionate about the success of independent retailers and we are looking forward to him joining us and taking the company forward.
Metcash share price snapshot
The Metcash share price has gained 18% this year to date. It has also gained 39% over the past 12 months.
It is down around 1% this past month. However, it's still well ahead of the S&P/ASX 200 index (ASX: XJO)'s return of about 20% in the last year.
