The Zip Co Ltd (ASX: ZIP) share price is rising on Thursday morning.
At the time of writing, the buy now pay later (BNPL) provider's shares are up over 1% to 41.5 cents.
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Why is the Zip share price rising?
Investors have been buying Zip's shares today after the company announced a number of leadership changes.
According to the release, with immediate effect, Cynthia Scott will assume the role of group CEO, overseeing Zip's group operations and strategy.
The release notes that Ms Scott is a highly respected executive and has made a strong contribution as CEO of Zip's ANZ business since November 2021. She brings extensive experience in financial services, corporate strategy, capital markets, and innovation to the position. This follows previous roles including CEO of Barclays ANZ.
Zip co-founders, Peter Gray and Larry Diamond will assume the roles of ANZ and US CEOs, respectively. They will be tasked with driving performance in Zip's two core markets and the company's next stage of sustainable growth and product innovation.
Diamond, who was group CEO, will continue to serve on the board as an executive director. Ms Scott is expected to join the board, with Mr Gray to act as a board advisor.
Why the change?
Zip advised that the changes reflect the company's lifecycle and maturity and optimise the leadership structure to deliver on strategic priorities and the next stage of profitable growth.
Importantly, the company believes it allows the founders to remain close to the business.
Zip's Chair, Diane Smith-Gander, said:
Marking Zip's tenth year of operation, the new leadership structure reflects Zip's evolution and positions the Company well for its next chapter. Over the past 18 months Cynthia has demonstrated an excellent understanding of Zip's business, its opportunities and values and has helped reset and execute on the Company's strategy.
We are delighted that she has accepted this role and that Larry and Peter as country CEOs will be the driving forces in Zip's two core markets – the US and ANZ. The Board thanks Larry and Peter for their significant contributions as CEO and COO.
