Planet Fitness stock plummets after CEO ousted
Shares of Planet Fitness (PLNT) fell sharply after the company's board ousted CEO Chris Rondeau. In a statement, the Chair of the company's board, Stephen Spinelli, Jr., writes that "as we enter the next chapter of Planet Fitness' journey, the Board felt that now was the right time to transition leadership..." Rondeau will remain a member of the board. Yahoo Finance Live's Brad Smith and Akiko Fujita discuss Rondeau's tenure at the Planet Fitness and just how unexpected this move was.
Video Transcript
- Looking at shares of Planet Fitness taking a dip there. Currently, as you can see, they're down almost 14%. That's after a leadership shakeup. Now the company ousting its CEO, Chris Rondeau, who has been with the company for 30 years and has served as CEO since 2013. Now the director of the board, writing in a statement, quote, "As we enter the next chapter of Planet Fitness, this journey, the board felt that now was the right time to transition leadership."
Now Craig Benson, a current board member, has been appointed interim chief executive officer. Chris Rondeau will continue to serve on the board and in an advisory role under an existing agreement with the company. The company will conduct a search for a permanent CEO and will consider internal and external candidates. Now Rondeau, writing in a statement, quote, "I am grateful for and look forward to supporting the management team in an advisory capacity and have confidence in the long-term potential of Planet Fitness. For now, though, the stock under some pressure.
