COMPANY COMMENT
Alexander Forbes still considered stable following exodus of executives
Proactive board has helped limit share price movements since the CEO quit while analysts say the company has a lot of potential, if well managed
The exodus of seven executives in the space of less than three months would, in any other company, be regarded as a crisis with the share price tanking as investors try to establish what is going on. But in the case of Alexander Forbes, the share is down only 4.6% since the first executive departure, the unceremonious axing of former CEO Andrew Darfoor. Analysts attribute this to Alexander Forbes’s “stability” saying the company has a lot of potential, if well managed. What probably helped limit share price movements during the recent departures is that the Alexander Forbes board is being proactive in managing the executive team, as seen by the swift appointment of Dawie de Villers, only a month after Darfoor left and the recent installation of the executive committee to look after the business units that have been left without their heads. The situation might have been different if the board was exclusively reacting to unexpected resignations, one analyst says. “While the governan...
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