Speedcast’s Board of Directors has accepted the resignation of CEO PJ Beylier in light of a disappointing preliminary 2019 Full-Year (FY19) financial result for the remote communication and IT solutions company. In a statement, Beylier called 2019 a “challenging” year: “The quality of the financial result is not in line with the Board and management’s expectations, which I take responsibility for and have therefore decided to resign.”
Speedcast’s preliminary view of the FY19 result is a little greater than 10% below its previous guidance, but that result includes some items that do not directly contribute to ongoing earnings. The company is also seeking to reduce overall leverage, and its board is reviewing the potential sale of non-core assets to reduce debt.
The company is looking for a new CEO using executive search service Russell Reynolds, focusing on candidates in Europe and the U.S. In the interim, Board Directors Peter Shaper and Joe Spytek will act as co-CEOs, while continuing as directors. Beylier will be available to the company for three months, and then will receive a termination payment equivalent to 12 months salary. He will forfeit any unvested shares, and will receive no bonus for the FY19 year.
“We acknowledge the many years of committed service PJ has given to Speedcast, and the significant business that he and the team created over that time. However, in light of the preliminary FY19 result, the Board has accepted PJ’s resignation and will now move to urgently finalize that result. We will also immediately implement the necessary plans to improve the business over FY20 and beyond,” Speedcast’s Chair, Stephe Wilks said.
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