Sequoia Financial Group Extends CEO Contract to 2026
SEQ (SEQ) Share Update July 2024 Tuesday 23rd
Sequoia Financial Group Extends CEO Contract Amid Strong Performance
Sequoia Financial Group Ltd (ASX: SEQ) has announced the extension of CEO Garry Crole's contract until June 2026, following a period of significant growth and success under his leadership.
Instant Summary:
- Garry Crole's contract extended to June 2026.
- Strong revenue, earnings, and dividends growth achieved since 2019.
- Focus on succession planning for the CEO role.
- FY24 expected revenue of approximately $125 million.
- Normalized EBITDA expected to be around $8.5 million.
- Final and special dividends declared.
CEO Contract Extension
Sequoia Financial Group Ltd (ASX: SEQ) has announced that Garry Crole has accepted a fixed-term contract as Chief Executive Officer, extending his tenure until June 2026. Garry has led the Group since 2019, achieving significant milestones and developing a robust business model that will sustain the Group long term.
Throughout his tenure, the Group has seen strong revenue, earnings, and dividends growth, even as the sector experienced a significant reduction in adviser numbers. Group Chairman Charles Sweeney expressed his satisfaction with the extension, stating, 'We are very pleased to extend Garry’s contract until June 2026, allowing him to fulfill the next chapter of our Group’s mission.'
Future Focus and Succession Planning
The Board's focus for the next two years will include succession planning for the CEO role, with Garry mentoring his replacement. This strategic move aims to ensure a smooth transition and continued growth for the Group.
Under the terms of his new contract, Garry has agreed to maintain his current salary for the next two years. He is also eligible for a short-term incentive capped at 30% of total remuneration, taken as SEQ shares.
Financial Performance and Dividends
Despite significant disruptions over recent months, Sequoia Financial Group expects to report FY24 revenue of approximately $125 million and normalized EBITDA of around $8.5 million. The Board anticipates declaring a 2.5 cent fully franked final dividend, bringing the total normal dividends for FY24 to 4.5 cents per share.
In addition to the final dividend, a 2.5 cent fully franked special dividend will also be declared, reflecting the Group's strong financial performance and commitment to returning value to shareholders.
The extension of Garry Crole's contract is a positive signal for Sequoia Financial Group's stability and future growth. His leadership has been instrumental in achieving strong financial results, which is likely to boost investor confidence. The announcement of final and special dividends further underscores the Group's robust financial health, potentially leading to a positive impact on the stock price.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting Garry Crole's successful track record and the strategic focus on succession planning. The anticipated financial results and dividends have also been well-received, with many viewing this as a sign of the Group's resilience and growth potential.
Conclusion:
Sequoia Financial Group's extension of Garry Crole's contract and the announcement of strong financial results and dividends reflect a promising outlook for the company. Investors should keep an eye on the upcoming FY24 report and consider the long-term growth prospects under continued strong leadership.