Sangoma Technologies Corp T.STC

RE:RE:RE:thoughts on executive change

[AlwaysLong683]

When STC merged with STS, Worthington (then CEO of STS) received a boatload of STC shares and became Chairman of the Board of Directors while Wignall remained CEO as the deal was considered to be more of a merger of equals than a takeout or acquisition (part of the problem re. STC overpaying for STS IMO).

While the CEO is the head of management at the company, develops the company's vision, and makes the executive decisions, he is supervised by the BOD who are there to represent the interests of shareholders.

Given the lack of a statement in the press release from Wignall himself explaining the reasons for his departure, it looks like there was a vote by the BOD to remove him as CEO (or there was about to be one and Wignall decided to step aside before the vote took place). I suspect Wignall lost the confidence of the Board and perhaps had a falling out with Worthington with the majority of the Board siding with Worthington. Hard to believe Wignall would just leave after being with STC for so long as CEO and building it up with his acquisition spree. If he was retiring, taking on new ventures, etc., I assume they would have included that in the press release to indicate he is leaving voluntarily.

Given the 16% bump in the share price today, looks like the market views Wignall's departure as a positive, suggesting that they have been disappointed not only in the share price of STC, but the company decisions and quarterly results ever since the STS merger was closed.

Finally, I thought there might be a good chance that STC is simply taken private given the apparent value in the recent share price performance, but if this was in the works, I think STC would have simply announced that instead of management changes, so perhaps Worthington / Others want to keep it a publicly-traded company with better CEO leadership.....?