The Caltex Australia Ltd (ASX: CTX) share price could fall in early trade after the company announced a management transition process ahead of the retirement of its long-term CEO.
What did Caltex announce this morning?
Caltex Australia announced that Managing Director and CEO, Julian Segal, has informed the Board of his intention to retire and will step down once a formal search and transition process has been completed.
According to the release, the process to appoint a new CEO will include the evaluation of highly qualified and talented internal candidates as well as external candidates with appropriate expertise and experience.
As quoted in the release, Caltex Chairman Steven Gregg commented:
Julian has delivered outstanding outcomes for Caltex shareholders, improving operational and financial performance and steering the company through a number of challenges and transitions. We are pleased that Julian will continue to work to execute our strategy and ensure continuity of leadership as we implement plans to find his successor.
The release included comment from Mr Segal, who confirmed his commitment to leading Caltex through the search and transition process and ensuring a smooth handover of responsibilities to the next CEO. He also stated:
It’s been an honour to lead Caltex over the last 10 years and I am proud of what’s been achieved for shareholders, customers, employees and our community partners. Caltex’s strength has always been its ability to adapt and transform and the company has an exciting future.
I’d expect to see the Caltex share price slide lower in early trade given the leadership changes announced to the market this morning.
Under Mr. Segal’s leadership over the last 10 years, the Caltex share price has nearly tripled thanks to a strong strategic direction and the company’s successful strategy execution.
I’d personally be waiting for Caltex’s results release in late August to evaluate where the company is headed and whether August could be a good buying opportunity for Caltex shares.
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Extracted from Motley Fool