The Fortescue Metals Group Limited (ASX: FMG) share price is trading lower on Friday.
In morning trade, the mining giant’s shares were down almost 2.5% to $17.83.
Why is the Fortescue share price tumbling lower today?
Investors have been selling down the Fortescue share price on Friday following the surprise announcement of the exit of its Chief Executive Officer, Elizabeth Gaines.
According to the release, after four years in the top job, Ms Gaines is stepping down and will transition to the role of Non-Executive Director.
What’s next?
Fortescue is now embarking on an extensive global search for a replacement with the appointment of global management consulting and executive search firm Egon Zehnder.
Egon Zehnder will be tasked with identifying a CEO and other leaders with exceptional skills and global experience across heavy industry, manufacturing, and renewable energy.
Fortescue also highlights that its new CEO and leaders will be expected to have a strong track record of delivering transformation, innovation and enhanced value for stakeholders. Furthermore, the successful candidates will share Fortescue’s culture and values to assist the company as it delivers on its vision of moving from a pure play iron ore producer to a diversified renewable energy and resources major.
“An enormous opportunity”
Fortescue’s Chairman, Dr Andrew Forrest, has commented on the search for a replacement.
He said: “The search with Elizabeth, for a CEO and an even deeper management bench, is an enormous opportunity for a talented and visionary executive team, to continue the successful leadership of Fortescue, as we deliver on our strategy to diversify Fortescue to a renewable energy and resources company.”
“Fortescue Future Industries (FFI) is making enormous progress and will support the decarbonisation of Fortescue through the innovation and technological development of a green fleet and the supply of green energy. We are undergoing a significant transition, and I am delighted that with Elizabeth, the board is united in its vision and enthusiasm for the opportunity this presents,” Dr Forrest added.
The Fortescue share price is down 28% in 2021 amid falling iron ore prices and FFI uncertainty. Ms Gaines exit today certainly adds to the latter.
The post Fortescue (ASX:FMG) share price falls following surprise CEO exit 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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