What happened
After reaching an all-time high of $101.15 on Oct. 1, shares of Square (SQ -2.22%) have declined about 30% following the loss of an important executive.
So what
On Oct. 10, Square announced that CFO Sarah Friar would be stepping down to become CEO at Nextdoor, a social network for neighborhood communities. Friar will stay at Square until December to help smooth the transition to a new CFO.
The loss of a key executive led to a sell-off in Square's stock. Image source: Getty Images.
Friar is a well-respected leader at Square, with responsibilities beyond that of a typical chief financial officer.
CEO Jack Dorsey said in a press release: "As Square's CFO, Sarah steered us through an IPO and helped build a growing ecosystem of businesses that will scale into the future. Sarah leaves us having established a culture of entrepreneurship and discipline across the entire company."
David Viniar, Square's lead independent director, who previously was CFO of Goldman Sachs, will lead Square's search for Friar's replacement.
Now what
Friar's loss will likely be felt by Square for some time, but Dorsey made it clear that the company remains in good hands:
I'm so happy for Sarah. She's going to be great at running a company. Square is different tho. We're organized by business unit, like Cash, Caviar, Seller, Capital ... and a lead/CEO for each. They are the execution, not me or Sarah. Square is built to be a durable ecosystem. https://t.co/OLcOIbbkXm
— jack (@jack) October 10, 2018
With Dorsey and his team at the helm, Square investors should not be overly concerned with Friar's exit. The company is firing on all cylinders, with growth accelerating in many of its key business lines. As such, it may not be long before Square's stock once again ascends to new all-time highs.
