The Zip Co Ltd (ASX: ZIP) share price is up 1% after a proposed share consolidation and a US leadership transition.
Zip is a buy now, pay later business with a presence in Australia and New Zealand.
Zip share consolidation
The buy now, pay later business said that it will seek shareholder approval at the 2026 AGM to consolidate its fully paid ordinary shares on a five-to-one basis.
Therefore, under this consolidation, every five existing ordinary Zip shares will be converted into one ordinary share.
The idea of the consolidation is that the number of shares on issue will reduce to a level that the board considers more appropriate for Zip’s size and market position. It could also broaden the appeal to a wider range of investors.
Zip said the consolidation isn’t expected to change its underlying value or the overall value of a shareholder’s holding in the company. Each shareholder’s proportionate interest in the company will remain unchanged, subject to the treatment of fractional entitlements.
Zip’s board said it unanimously recommends that shareholders vote in favour of the proposed consolidation.
The AGM is due to be held on Thursday, 19 November 2026. Normal trading of the new Zip shares is expected to start on 2 December 2026.
US leadership change
Zip also announced that Joe Heck has resigned as CEO of Zip US.
Rory Herriman, who has been Zip’s US chief technology and operations officer, has been appointed President and interim CEO of Zip US, effective immediately.
The buy now, pay later business said Herriman has been a key member of Zip’s US leadership team for almost three years, driving the development of the US product, technology and operations.
Herriman has 30 years of experience in financial services and fintech, including consumer lending and payments.
The company said that US-based Zip Group CEO and Managing Director Cynthia Scott will work closely with the US leadership team to ensure a smooth transition. Mr Heck will be available to advise Zip until early next year to support an orderly transition.
Cynthia Scott said:
On behalf of everyone at Zip, I thank Joe for his contribution to Zip and to the growth of our US business over the past two years. He has played an important role in our success, and we wish him all the best for the future.
Rory is a key member of our leadership team with deep knowledge of our business, our customers, and our product and AI strategy. His appointment ensures continuity as we continue to deliver on our significant growth opportunity.
Final thoughts on the Zip share price
It’ll be interesting to see if either of the above changes make a long-term difference to the company.
Zip continues to grow strongly in the US, so it’s important who the boss is of that business.
It’s not the type of business I’m looking to buy for my own portfolio, though it is an impressive business and the fact it’s down by a third since early July could suggest there’s an opportunity. For now, I’m looking at other ASX growth shares.
