SYDNEY: A string of unexpected chief executive departures is making for a shaky start to Australia’s earnings season, amid a market that harshly punishes company disappointments and poor performance.
Lendlease Corp chief Tony Lombardo has become the latest company chief to announce plans to step away, just weeks out from the construction firm’s first half-year results.
Earlier this week, CSL Ltd’s Paul McKenzie and ASX Ltd’s Helen Lofthouse told the market they intended to retire from their roles, days before their respective companies released earnings.
“A changing chief executive is always a tricky thing for the market,” said Jun Bei Liu, lead portfolio manager and co-founder at Ten Cap Investment, when asked about Lofthouse’s departure on Wednesday.
It creates uncertainty because the market doesn’t know if the company plans to change its direction, she added.
All three firms have fallen out of favour with investors in recent years, prompting calls for various strategic resets. Lendlease’s share price has lagged the broader market amid mounting costs, including pivoting away from international construction development.
CSL’s business has struggled due to fluctuating demand for flu vaccines after the Covid-19 pandemic. CSL chair Brian McNamee said the board concluded that McKenzie didn’t have the skills needed for the next phase of its development. At ASX, a number of upgrade delays and technical mishaps related to its clearing and settlement system has prompted a regulatory probe into its governance. — Bloomberg
