Shares of Quebec multinational Gildan fell more than 10% on Monday following the impromptu departure of the company's CEO Glenn Chamandy.
“Yesterday I received notice from the CEO of Gildan Sportswear that the company was terminating my employment contract without cause. It is unfortunate that my vision for the future differs from that of other council members,” Mr Chamandy said in a press release issued around 8am on Monday morning.
Two hours earlier, Gildan announced, without providing any explanation, that Glenn was resigning from his position.
“We thank Glenn for his service and wish him continued success,” the company said.
Just after 10 a.m., Gildan shares were down more than 12%, trading at $43.61 on the Toronto Stock Exchange.
“The council for some time now [de Gildan] deals with succession planning. The company considered internal and external candidates for the CEO position. The main reason for today's announcement, […] “It was somewhat of a disagreement with Mr. Chamandy about the appropriate timing of the transition,” RBC analyst Sabahat Khan wrote in a note speaking to Gildan Chairman Donald Berg on Monday.
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Grandson of the founder
Mr. Chamandy is one of the grandsons of Joseph Chamandy, the founder of Harley, the company that gave rise to Gildan. He worked for the latter for 40 years, including almost 20 years as CEO.
The 60-year-old owns nearly 3.4 million shares of Gildan, currently worth nearly $150 million.
Glenn Chamandy's employment contract stipulates that he is entitled to nearly $20 million (CAD$27 million) in compensation if he is fired “without just cause.”
It is American Vince Tyra, a former president of Fruit of the Loom, who will succeed Mr. Chamandy in February. In the meantime, a Gildan administrator, Craig Leavitt, will serve on an interim basis.
Vince Tyra Photo from Houchens Industries website
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