Ladbrokes announced yesterday with a note to the media that the current Chief Executive Officer Richard Glynn will step down in 2015 after spending almost five years as the company's leader.
Ladbrokes is well behind financial and stock priced base targets leading many in the industry to believe Glynn stepping down was just a matter of time. The main reason behind the company's unsatisfactory results of this is believed to be that the Ladbrokes migration from the Microgaming platform to the Playtech platform did not go as smoothly as planned, causing the operator to have to support customers on multiple networks simultaneously.
The online gaming company has fully migrated to Playtech's iPoker network. Stock prices failed to reach the 280 pence target price Glynn was tasked with on his appointment. Yesterday's closing price of 114 pence could be the main driver to Glynn and Ladbrokes parting ways.
Not everyone agrees the timing was right for Ladbrokes to be searching for a new CEO, especially considering the company's strong presence in the UK. Some analysts believe that the company should have potentially waited since the migration is fairly new and the uncertainty of the impact of the new 15-percent UK Point of Consumption Tax commencing earlier in December.
Ladbrokes Chairman Peter Erskine praised the outgoing CEO and additionally implied that he has set the path for the company's future success. "He has devoted enormous energy and dedication to securing the transformation of the company and the benefits of that work are beginning to be seen," said Erskine.
It appears the split is amicable with Glynn commenting, "It has been a privilege to lead Ladbrokes over this crucial phase. I am very proud of the resilience and professionalism the team has shown during this intense period of activity."
It also appears Glynn plans to work with the new CEO in hopes of a smooth transition.
"I will continue to serve the company to help ensure a smooth succession I look forward to the Company, the shareholders, our partners and in particular everyone in the team reaping the benefits, over the next few years, of all that has been done," Glynn said.
Ladbrokes is believed to have just started the search and may look outside the company to fill the leadership role for the company. Erskine also expressed his pleasure that appears whomever the company ultimate chooses to lead the company into the future will be smoothly transitioned, "I am pleased that he will both see through the final steps of the implementation plan and be on hand to facilitate an orderly succession process. Ladbrokes has been transformed and is a far stronger company as a result of his work. "
The exact timing of Ladbrokes hiring a new CEO and for Glynn to fully transition away from the company is unknown, but is not expected to go past April 2014.
Image courtesy of The Telegraph