The surprise exit on Jan. 4 of Nutrien Ltd. CEO Mayo Schmidt (GM Jan. 7, p. 1) just eight months into the job has continued to garner reaction from analysts.
“My concern is why does this keep happening,” said Brian Madden, Senior Vice President and Portfolio Manager at Toronto-based Goodreid Investment Council, which holds Nutrien shares. “It raises some questions about the board and governance,” he said in a Bloomberg report. “This is not something that comforts or inspires investors.”
It could be as simple as Schmidt and the other board directors deciding that he wasn’t the right fit to lead the company long term, said Seth Goldstein, an analyst at Morningstar Investment Service. If the fit wasn’t right, “it’s best to move on quickly,” he said.
Goodreid’s Madden said he plans to continue holding Nutrien shares since the company has world-class potash deposits that are in the ground regardless of who is at the helm.
Still, “in a perfect world we would have full transparency on all this,” he said. “I don’t know if we’re ever really going to find out.”
Nutrien shares closed Jan. 12 at $72.30 having regained any losses occurring after the CEO announcement made on Jan. 4.