The Polynovo Ltd (ASX: PNV) share price is down more than 9% after announcing there would be a CEO change.
Polynovo said its products simplify management of acute complex wounds, providing “meaningfully differentiated patient outcomes”.
CEO change
While the entire market is going through volatility, this healthcare company also announced that CEO Swami Raote will cease employment on 10 June 2025, but step down as CEO effective immediately.
Non-executive director Dr Robyn Elliott has agreed to be the acting CEO until a permanent CEO can be appointed.
The company noted the board of directors and Raote failed to reach an agreement. This follows after last week when The Australian reported there were alleged interactions between Polynovo’s chair David Williams and “some members” of the company’s management team.
After engaging legal counsel to hold discussions with the affected parties regarding the issues, the board has engaged Alice DeBoos from Kingston Reid to provide training to the board about “appropriate workplace behaviour and employee and director responsibilities in that context”.
The board has also engaged Lindsay Maxted to advise on specific governance matters, including on the interaction between board members and company executives.
Polynovo has also adopted a ‘board protocol’ in regards to interactions between the board, board members and management team members.
Finally, the board has engaged Spencer Stuart, to assist with skills assessment and succession planning across the entire board (including the Chair).
The board believes these actions have “appropriately addressed the various matters raised, to ensure a positive, safe and inclusive workplace” for all staff.
The company concluded:
This outcome, balanced with the significant contribution of the Chair to the success of the business, ensures the ongoing focus of the company on delivering quality patient care and positive outcomes for all stakeholders.
Final thoughts on the Polynovo share price
I think a large part of the company’s decline today is due to the overall share market. However, the CEO change and governance attention is not a good look for the company. It’s down 44% in 2025 to date, so it could be a turnaround opportunity if the company continues achieving operational success. It’s not at the top of my watchlist, though.
