It is not the first time we see a CEO resign from a company after many years of working with it, but it is very rare to see shares go down so hard after such a resignation. The CEO of IG Group Peter Hetherington will be resigning soon, which actually plummeted the share prices of the company so much that he might need to stay just to keep things safe.
Its stated in the report that IG Group’s share went down by 13 percent after the London Stock Exchange closed for the day. However, this is not news for them, because the company has been having a rough 2 weeks now, having them a consecutive loop of losses. But judging by how much the stocks have fallen the losses are just too mind-boggling to calculate right now. Try to imagine, their stocks were trading roughly around 955 pence per share a few weeks ago, and today the retail broker is facing downturns on the share price of more than 315 pence, making its shares 640 pence a share, a disaster in the books of stock exchange.
Wrong day of the wrong year for IG Group
The retail brokerage has been receiving hit after hit these last few months, but IG Group has been dealt the worst possible card, the resignation of its CEO. Herington has chosen pretty much the worst possible time to resign, leaving the firm to figure it out and try to resolve its issues on its own. The ESMA’s new regulations have already been implemented in August, so the European brokers are capping leverage for retail clients at 30:1. CFD and indices limits are even lower. Unfortunately, the retail brokerage business has been losing popularity with investors, even buyers are trying to avoid it, expecting prices to fall even lower.
This is not the first time that IG Group has lost a CEO. Even though Hetherington has been working in the company for over 24 years, he was the CEO of it for no more than 3 years. Mostly he was the one overseeing the company’s downfall during these new regulations from ESMA, some say that he couldn’t really handle it anymore and had to bail out before he did any more damage. If that is the case then he most certainly did more damage.