The James Hardie Industries plc (ASX: JHX) share price will be on watch on Friday morning.
This follows news that there has been a surprise and immediate change in the building products company’s leadership.
Why is the James Hardie share price on watch?
The James Hardie share price will be on watch this morning after it announced the exit of its Chief Executive Officer (CEO), Jack Truong, with immediate effect.
According to the release, Mr Truong has had his employment terminated with immediate effect after employees raised concerns about his work-related interactions. The release explains that the James Hardie Board undertook extensive due diligence, which included retaining outside counsel and a third-party consultant. It also provided opportunities and support for sincere change in Mr Truong’s behaviour.
However, based on additional employee complaints, the Board undertook further due diligence, including further support from a third-party consultant. After which, the Board ultimately concluded that Mr Truong’s conduct, while not discriminatory, extensively and materially breached the James Hardie Code of Conduct.
The James Hardie Board advised that it took this action to uphold the company’s core values, which include Operating with Respect, and to maintain continuity of the management team that has been instrumental in its transformation.
What now?
James Hardie has appointed Harold Wiens as its Interim CEO. He has been an independent non-executive director since May 2020 following a career with 3M Company where he led several of its largest business segments based in the United States, Asia and Europe.
Mr Wiens commented: “It is a pleasure to join such a deep and talented leadership team, which I have worked with and admired for their professionalism, strategic thinking and strong execution since I became a Board member.”
Earnings guidance upgraded
Something that could support the James Hardie share price today is news that it is upgrading its guidance for FY 2022.
Management now expects FY 2022 adjusted net income to be between US$605 million and US$625 million, compared to the prior guidance of US$580 million and US$600 million. This new guidance represents an increase of 32% to 36.5% over the US$458.0 million recorded in the prior corresponding period.
The post James Hardie (ASX:JHX) share price on watch after CEO kicked out appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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