- Nuix (NXL) reveals two key executive departures this morning, just six months after its disappointing IPO
- CFO Stephen Doyle “is being terminated by mutual agreement” and will be replaced by Chad Barton
- CEO Rod Vawdrey will also stand down once a replacement has been found
- Nuix’s share price has fallen more than 75 per cent from a high of $11.05 per share in January, costing shareholders roughly $2.9 billion
- Shares in Nuix are up 1.89 per cent to $2.72
Struggling technology company Nuix (NXL) has revealed two key executive departures this morning, just six months after its disappointing IPO in December last year.
Chief Financial Officer Stephen Doyle, who reportedly hasn’t been seen in Nuix’s head office in Sydney since a federal police investigation into possible breaches of the Corporations Act was reported in May, “is being terminated by mutual agreement”.
Chad Barton, who most recently spent five years as CFO of The Star Entertainment Group, has been appointed as interim CFO and will assume the role on June 21.
“I am delighted that someone of Chad’s calibre and extensive listed company experience is joining Nuix as interim Chief Financial Officer,” said CEO Rod Vawdrey.
“Chad brings deep capital market relationships and a strong understanding of financial reporting and systems.”
Half an hour after Doyle’s departure was announced, Nuix put out another statement saying Vawdrey will also be leaving once a replacement is found.
Executive search firm Russell Reynolds has been appointed to conduct the search.
Jeff Bleich, Chairman of Nuix, said Rod’s decision to retire “reflects his deep commitment to Nuix and love for the company”.
“Rod has agreed to remain at least through the announcement of end of year results, and throughout the process required to find the right replacement to ensure the smoothest possible transition,” he said.
The resignations are the latest development from a turbulent few months, which peaked after an investigation by The Sydney Morning Herald, The Age and The Australian Financial Review was published, detailing major problems with Nuix’s governance and the quality of its financial accounts, years before it listed at $5.31 per share.
Since then, Nuix’s share price has fallen 50 per cent, and more than 75 per cent from a high of $11.05 per share in January, costing shareholders roughly $2.9 billion.
The rapid decline was boosted by two downgrades to the company’s anticipated earnings in the space of a few weeks — one in April and one in late May — which saw Nuix’s forecast earnings for 2021 drop from $193.5 million to between $173 million and $182 million.
Shares in Nuix are up 1.89 per cent to $2.72 as of 12:42 pm AEST.