OZ Minerals Ltd [ASX:OZL] share price dropped more than 2% this morning and now trades around $7.45 per share.
What happened to the share price?
In an announcement this morning, OZ Minerals said that CFO, Luke Anderson was leaving. At the end of September, Anderson will take up his new role as CEO of Genesee & Wyoming Inc. [NYSE:GWR].
OZ Minerals is now left looking for a new CFO.
What now for OZ Minerals shares?
The uncertainty of OZ Minerals’ new CFO has got investors scared. And they should be hesitant for a reason. Management are an integral factor in the success or failure of a business.
In an Australian Securities and Investments Commission (ASIC) survey, 40% of respondents cited ‘poor management’ as a cause of company failure. And according to the Reserve Bank of Australia (RBA), public companies are far more likely to fail, in part due to the separation between management and owners (shareholders).
In their 2016 report, ‘Why do companies fail’, the RBA wrote:
‘…public companies are more like to fail than comparable private companies; perhaps because of greater separation of ownership and control within public companies allows their managers to take greater risks.’
But don’t be surprised if OZ Minerals’ bounces back. For now though, investors will be highly anticipating who the new CFO will be.
Junior Analyst, Money Morning
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