By Alice Uribe
SYDNEY–Magellan Financial’s shares fell after it announced the departure of its chief executive and raised its fiscal 2024 cost guidance.
Magellan’s shares fell 4.1 to 6.26 Australian dollars ($3.98) on Wednesday, after earlier hitting a low of A$6.11.
The Australian funds management company said Wednesday that Chief Executive and Managing Director David George would leave, as the board made efforts to refocus its leadership. George would remain available until Dec. 31 for a handover, at which point he would be paid in lieu of the balance of six months’ notice.
In a separate announcement, Magellan increased its FY 2024 funds management cost guidance to between A$97.5 million and A$102.5 million, up from the guidance it provided at its full-year results in August, which flagged FY 2024 operating expenses of between A$95 million and A$100 million.
The increase, the company said, was associated with proposed additional retention payments totaling around A$7.7 million to be made to current employees with outstanding Employee Share Purchase Plan Loans.
Magellan is down around 30% for the year.
Write to Alice Uribe at [email protected]
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