“Tom has been in charge of the company for 10 years. I imagine it’s something he’s been thinking about for a long time, ”Ms. Shand said Monday.
He said the EML board had been looking at succession planning and “mobilized very quickly towards that” by the end of Sunday.
“EML, of course, has had some challenges, but it’s also such an exciting business,” Ms. Shand said.
Shares of EML Payments plummeted another 24.6% to 96 ¢ on Monday, a drop of more than 60% so far this year and the lowest in more than five years. The company is facing possible collective action related to European disclosures amid higher compliance costs, which have meant a friction for recent financial results.
The incoming head declined to comment on the market reaction, but said it would continue a strategic review to identify new areas of growth and communicate with investors and stakeholders in due course.
“With my background, I am very aware of markets and volatility,” Ms. Shand said.
“I think once the market understands that I have been chosen to lead EML into a new chapter of growth, especially in such a fast paced industry, once the market understands and is comforted, they will see that we have strength. Product sets, capabilities of solid execution: I’m really looking forward to sharing it. “
RBC Capital Markets analyst Garry Sherriff noted that no reason was given for the immediate departure of Mr. They believe in EML. His immediate departure comes when the assaulted company focuses on its European operations.
Tom Cregan Jesse Marlow, outgoing EML CEO
Ms. Shand has been director of EML since last September and has experience in technology companies operating in highly regulated markets, with disruptive governments and companies in various sectors. President Peter Martin says he brings “deep gratitude” for the “exciting growth opportunities” that EML will pursue in digital payments.
“What’s important is that he has a very impressive track record in initiating and overseeing complex and transformative changes,” Martin said.
EML’s recent problems stem from the purchase of prepaid financial services (PFS) in Ireland in late 2019 for $ 425 million, as part of a global expansion. Nearly a third of EML’s consolidated global revenue came from its Irish trading operations after it moved its business out of the UK out of Britain after Brexit.
But the Central Bank of Ireland then raised its concern about the composition of the EML board, amid tougher scrutiny by foreign payment companies.
He questioned the number and background of PFS board directors, the board’s methodology and governance processes, and the controls and responsibilities of EML compliance leadership.
Last week, RBC reduced its earnings estimates for 2023 by 16% and for fiscal year 2024 by 4%, 20% below the consensus estimates for 2023. The rebates were tied to ongoing macroeconomic trends in Europe, higher costs for longer as EML. awaits the next steps by the Irish regulator on reducing PFS program growth constraints and correction deadlines.
“We have conservatively assumed that the repair process would take longer than previously planned as the regulator goes to its own internal schedules,” Sherriff said.
Last week, EML said it had won a Spanish government contract worth 210 million euros ($ 320 million), which UBS analyst Tim Plumbe said was an important indicator that customers remain comfortable dealing with EML before CBI resolution “.
While the victory demonstrates EML’s ability to become part of its new sales pipeline, Mr Plumbe said EML had noted that the contract would use a material proportion of the growth limit imposed by the IWC on its European license. .
Mr. Cregan will obtain its contractual rights, but no termination compensation will be provided. The company said Ms. Shand’s remuneration would be announced “in due course.” EML did not provide a reason for Mr.’s resignation. Cregan.