EML Payments Ltd (ASX: EML) shares are starting the week deep in the red.
At the time of writing, the ASX fintech stock is down a sizeable 22% to 70 cents.
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Why is this ASX fintech stock crashing 22% today?
Investors have been quick to hit the sell button today after the company unceremoniously kicked out its CEO.
According to the release, the EML Payments board elected to discontinue Ron Hynes's employment agreement as managing director and CEO from 21 December 2024. Hynes only commenced in the role at the end of June.
The company advised that it made the decision to oust its leader having resolved that alternate leadership is required to execute the company's strategy, EML 2.0.
Hynes's will receive six months' notice but will not receive any equity grants given he will not be in employment on the relevant vesting dates.
Hynes out, Hynes in
Current independent non-executive Chair, Anthony Hynes (no apparent relation), will now assume the role of executive chair effective today.
The ASX fintech stock notes that Anthony Hynes brings a wealth of experience in the operation of successful global payments businesses and has developed a deep understanding of the EML business over the past six months since his appointment.
His remuneration during the period of his executive chair appointment will be $67,000 per month, inclusive of his current chair fee. This is the equivalent of the former CEO's total fixed remuneration.
Commenting on the change, EML Payments' new executive chair, Anthony Hynes, said:
Our energised, passionate and broadened leadership team is building momentum and I'm excited to lend them my further support as we work hard to build a high-performance culture and make 2025 a formative year for EML. I love the payments industry having dedicated a significant part of my professional life to it and the upside for EML following the successful execution of our strategy is significant.
It is never a good look for a company to have a CEO exit with immediate effect and without any real explanation. Especially one that has been in the job for less than six months. As a result, it isn't surprising that this ASX fintech stock is sinking today.
One positive, though, is that management has reiterated its guidance for FY 2025. It continues to expect its underlying EBITDA to be in the range of A$54 million to $60 million for the 12 months.
