"When a CEO leaves a business with immediate effect, you know something serious has happened. In Pets at Home's case, a nasty profit warning has cost Lyssa McGowan her job. Problems have been building up for some time and it's clear that time had run out as far as the board was concerned. McGowan was given quite a bit of time to turn the business around, but her strategic decisions haven't yielded the necessary success."
"Prior to today's news, £1 billion had been wiped off the value of the company since McGowan was appointed CEO designate in February 2022. That's significant value destruction and shareholders will only be patient for so long. Dan Coatsworth, investment analyst at AJ Bell, comments: "Someone must take responsibility and that inevitably falls on the business leader. The board might have felt they had no choice but to seek a new CEO, particularly if shareholders were disgruntled behind the scenes.""
Pets at Home shares fell more than 16% following a profit warning and the immediate departure of CEO Lyssa McGowan. Strategic decisions under McGowan failed to turn around the business despite an extended period to do so. Since her appointment as CEO designate in February 2022, about £1 billion of company value was wiped out. Analysts say responsibility typically falls to the business leader and the board likely sought new leadership amid shareholder discontent. Market conditions deteriorated early in her tenure, and post-pandemic declines in pet retail spending reduced the boom seen during widespread lockdowns.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]