The James Hardie Industries (ASX: JHX) share price is in the red on Tuesday after rumours that its ousted CEO could be gearing up for a legal battle hit headlines.
The company’s former boss was shown the door last week after the company found that his treatment of employees, while not discriminatory, went against its code of conduct.
After spending most of this morning in the green, the James Hardie share price has currently slipped to $50.08. That’s 0.18% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.6%.
Let’s take a look at the latest in the building product company’s leadership debacle.
James Hardie share price slumps amid legal challenge rumours
According to reporting by The Australian, Truong seems to be readying himself to challenge James Hardie with a legal battle, which he expects will amount to a settlement.
That could help Truong recover some of the valuable incentives taken off the table on his termination.
According to the company, he is only eligible to statutory entitlements after being shown the door.
The company claimed its former boss engaged in bullying behaviour, with many employees feeling threatened and intimidated.
On Monday, reports emerged stating that Truong had issued a response to his termination, saying it “blindsided” him and denied the company’s version of events.
Interestingly, a now-former James Hardie director, Dr Moe Nozari, resigned yesterday effective immediately.
Nozari previously sat on the company’s Nominating and Governance Committee. The committee evaluates board members and senior management, among other responsibilities.
In Truong’s wake, James Hardie director Harold Wiens has been appointed to the role of interim CEO while the board looks for its next boss.
After all the commotion, the James Hardie share price is far from the green this week.
Over the last 7 days, the company’s stock has slipped 10.5% lower. Though, it’s still 40% higher than it was this time last year.
The post James Hardie (ASX:JHX) share price slips amid Jack Truong battle heating up appeared first on The Motley Fool Australia.
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- James Hardie (ASX:JHX) share price on watch after CEO kicked out
Motley Fool contributor Brooke Cooper 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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