What happened
Shares of John Wiley & Sons (JW.A 1.05%) are down 12% this week as of Friday's close, according to data provided by S&P Global Market Intelligence, after the publishing company announced the departure of its CEO and rescheduled its planned investor day presentation.
So what
In a press release Tuesday, Wiley announced the departure of Brian Napack as president and CEO, effective immediately, and named previous Board Chairman Matthew Kissner as interim CEO. Wiley also said it would reschedule its previously planned Oct. 12 Investor Day, with a later date to be determined.
Board Chairman Jesse Wiley thanked Brian Napack for his contributions as CEO over the past six years, noting he led the business "during a period of rapid change and market disruption during the pandemic."
In June, Wiley announced a value-creation plan to refocus on the company's strongest and most profitable businesses, divest non-core assets, and rightsize the company. As part of that plan, Wiley has already rolled out new initiatives focused on accelerating innovation in research publishing, expanded a partnership with researcher network ResearchGate, and sold its Tuition Manager business to education assistance benefits provider Tuition.io in July.
Now what
In a statement, Kissner said:
I'm confident in the recent portfolio decisions the Company has made and the intensified focus on Wiley's core businesses ... Wiley is in a great position as a market leader in Research with strong competitive moats, including must have journal brands, platforms and audience networks, along with a strong balance sheet and solid cash flow.
Wiley stock has obviously struggled in recent years, including a more-than 50% drop from its mid-2021 peak to trade near its post-pandemic lows. So while there's plenty of work to be done to reposition the company for sustained, profitable growth, Wiley's board obviously believed now was the time for an executive transition.
