Woolworths has announced that Origin Energy chairman will replace Gordon Cairns to lead the board of the nation?s largest grocery retailer.
Scott Perkins will assume the role of Woolworths chair, after being on the company?s board as a non-executive director for eight years.
When a new CEO joins a company it is a big deal, just like when a new coach or player joins a sporting team. Financial media will report when a CEO leaves or a new CEO joins a company because it can have an impact on the share price.
Investors tend to be jittery people. When a CEO leaves they question why and when a new CEO comes in there?s concerns about the company?s direction and what it will mean for its bottom line.
Share prices tend to be volatile during the transition of a new CEO. Ideally, there will be a staged transition to avoid volatility as an abrupt departure of a CEO is seldom good news for a company.