Future CEO Jon Steinberg to step down next year
18th Oct 2024 07:19
(Sharecast News) - Future said on Friday that chief executive Jon Steinberg plans to step down from the board later next year to relocate back to the US with his family, sending shares in the media group tumbling.
Steinberg's notice period is 12 months and the board will now launch a search for his successor.
Chair Richard Huntingford said: "I would like to thank Jon for the significant contribution he has made to the group. Whilst we are disappointed that he will be departing next year, we respect Jon's decision to return to the US.
"The Growth Acceleration Strategy he has implemented is well underway and, as highlighted by the pre-close update announced in September, continues to drive good strategic and financial progress. We will continue to work closely with Jon over the course of his notice period as we look to appoint his successor."
Future's full-year results are due on 5 December.
At 0940 BST, the shares were down 14% at 847.50p.
Russ Mould, investment director at AJ Bell, said: "Future's CEO didn't last long in the job. Jon Steinberg was only appointed to the top role in April 2023 but he's already handed in his notice, saying it's time to move back to the US with his family.
"Investors have taken this to be a bad sign, dragging the shares down more than 10%. Future used to be a highly acquisitive business, snapping up titles to expand its empire of media assets which were then used as a platform to earn commission on product or service sales.
"The cost-of-living crisis and high interest rate environment knocked the company off track and it has been trying to regain momentum ever since. More recently, it has been shutting down the weaker parts of its business to save money and improve group margins, while at the same time trying to revive growth.
"Investors will be asking why Steinberg isn't sticking around to see through this strategy - has he spotted problems down the line or has he simply been offered a better opportunity elsewhere?"