When will Under Armour (UA 0.62%) announce a new leader? In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on July 19, Motley Fool contributor Toby Bordelon discusses what appeared to be an unplanned exit from the former CEO and the time it has taken the activewear giant to announce a permanent replacement.
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Toby Bordelon: I think this was sudden and unplanned. Here's why. This was announced two weeks after they reported the last earnings report, Jose. If they knew this was happening, they probably would've said something at the earnings report. They probably would have given us a heads up at that point. Second, there's no replacement that was immediately announced. We get an interim CEO and it's honestly the person that if you had to scramble the most likely one you'd pick, the Chief Operating Officer, whose generally the No. 2 person. It certainly looks like it was unplanned. Why did Mr. Frisk leave? Well, here's the chat. He was hired to execute a turnaround for the company. He became CEO here. You look at that stock chart after, the turnaround hasn't worked. Two years later, turnaround hasn't worked. Maybe the board and Kevin Plank, who still controls this company, were frustrated. Maybe Frisk was frustrated. But either way, he's not going to be the one who's going to lead this turnaround going forward, that's for sure. Who will? Who will lead it? We don't know. Two months later, we still have no permanent CEO. We're going on two months later, the search is still underway as far as I know, we haven't really heard any news on that. Presumably, we'll get some at some point. Will our interim CEO get the job? I don't know. Frisk was COO just like Mr. Browne here before he became CEO, so there is precedent for that. But it's two months later, he's still the interim. I got to assume at this point the board would have said, "If you're our guy, you're our guy." Maybe they're not leaning in that direction. I do hope we have some clarity soon one way or the other. Hopefully, when they report earnings that they say something if not before. That's the big issue with Under Armour, who's going to lead this company going forward?