Sydney - Magellan Financial saw a decline in its share price following the announcement of its chief executive's departure and an increase in its fiscal 2024 cost guidance.
Share Price Decline
On Wednesday, Magellan's shares fell 4.1 to 6.26 Australian dollars ($3.98), reaching a low of A$6.11 earlier in the day.
Departure of CEO
David George, the Chief Executive and Managing Director of Magellan Financial, will be leaving the company. The board is taking steps to refocus its leadership. George will be available for a handover until December 31. In lieu of the six months' notice period, he will receive a payment.
Increased Cost Guidance
Magellan also raised its funds management cost guidance for FY 2024. The new range is between A$97.5 million and A$102.5 million, up from the previous guidance given in August which projected operating expenses of between A$95 million and A$100 million for FY 2024.
The increase is due to proposed additional retention payments of approximately A$7.7 million to be made to current employees with outstanding Employee Share Purchase Plan Loans.
Magellan's shares have experienced a decline of around 30% for the year.