The JB Hi-Fi Limited (ASX: JBH) share price has sunk around 5% in response to its CEO leaving.
JB Hi-Fi share price falls
The electronics retailer announced that Richard Murray is leaving the business to take over as the Premier Investments Limited (ASX: PMV) Retail CEO and Executive Director.
JB Hi-Fi said that Terry Smart, who was the CEO between May 2010 and June 2014, will become the CEO again. He previously oversaw significant expansion and growth. He returned to the business in April 2017 as the Managing Director of The Good Guys.
The company attributed a turnaround of The Good Guys to Mr Smart.
Mr Murray said: “The decision to leave was a very difficult one to make. After 18 years with the company it is time for me to take on a new challenge. I am proud to leave the business in such a strong position and the group will continue to go from strength to strength under Terry’s leadership.”
JB Hi-Fi also announced the Chief Financial Officer Nick Wells will join the board as an executive director, as will Terry Smart. Mr Wells has been with JB Hi-Fi since 2009 and CFO since 2014.
Premier Investments
Premier Investments has a lot of global growth potential, which may have been attractive to Mr Murray in my opinion.
The company seemed pleased with the appointment. Premier Chairman Mr Solomon Lew said:
“Richard is unquestionably one of the best retailers in Australia, having delivered significant growth, transformation and shareholder value during his career at the JB Hi-Fi Group. Richard’s appointment continues Premier’s track record of recruiting and retaining the best executives in the industry.
“This is the beginning of a new chapter for Premier as the group continues to grow its brands both locally and globally while carefully managing through continued pandemic conditions across numerous jurisdictions. With a very strong balance sheet Premier is exceptionally well placed to continue to grow our existing businesses and seek out new opportunities into the future.”
The Premier Investments share price is up 2.3% in reaction to this.
Summary thoughts
Mr Murray has done well for JB Hi-Fi, so it will be interesting to see how transferable his ability is to a (mostly) global apparel retail business. I think both ASX shares will done fine from here, but I’d rather invest in Premier Investments because of its global growth potential.
I like both of the above retailers as ASX dividend shares, and there are even more out there to consider.
