AA shares plunge after chairman’s sudden dismissal
THE AA yesterday sacked executive chairman Bob Mackenzie for “gross misconduct”, sending shares in the company plummeting.
The roadside recovery and motor insurance company had about £200million wiped off its market value after the announcement.
The AA announced that he had been sacked with immediate effect, but his son Peter said that his father resigned over an “extremely distressing mental health issue” for which he is being treated in hospital.
Father of five Mr Mackenzie, 65, became the AA’s executive chairman after leading a management buy-in in June 2014, when the company also floated on the stock market having previously been owned by private equity firms Permira, Charterhouse and CVC.
The company would not reveal the precise reasons for his dismissal. “It is a personal, conduct-related matter,” was all a spokeswoman would say.
But hours later Peter Mackenzie said: “My father tendered his resignation this morning and resigned his directorships due to acute ill health, from which he has been suffering symptoms for some time.
“A consultant clinical psychologist advised him last week that he needed to take at least six months leave. He is very unwell and has been admitted to hospital. The family trusts that all parties will act responsibly towards a loyal servant of the company in a manner which reflects the stress he has been suffering.”
News of his sacking led to shares in the AA dropping by more than 14 per cent to 207.2p within minutes of the announcement.
They regained some of the decline but in late trading, some £200milion had been wiped off the AA’s market value, taking the company’s market value down to £1.28billion.
Bizarre
The company said that Mr Mackenzie would be replaced by nonexecutive chairman John Leach, while Simon Breakwell – who was a founder of Expedia – has been named as acting chief executive.
Mr Mackenzie’s departure had “created some concern and a lot of uncertainty,” said Berenberg analyst Ned Hammond. “Obviously the circumstance of his departure is particularly bizarre and unforeseeable,” he said.