The market often gets worried when a company announces a major change in its C-suite. On news that it was doing just that, on Friday the stock of consumer healthcare company Hims & Hers (HIMS +1.79%) was whacked with a more than 9% sell-off by investors. This occurred on a relatively stable day for the broader market, as the benchmark S&P 500 (SNPINDEX: ^GSPC) basically traded flat.
Outgoing and incoming
After market close Thursday, Hims & Hers disclosed in a regulatory filing that COO Nader Kabbani had vacated his position. The company added that he did so in order to take up a new advisory role for the company, in which he will, in its words "provide ongoing strategic guidance." He will also, Hims & Hers said, specifically assist in its special global initiatives through next July.
Image source: Getty Images.
Kabbani is being replaced by Mike Chi, who is the chief commercial officer at present. His ascension and Kabbani's shift will both be effective Nov. 2.
Chi has been at Hims & Hers since April 2021; previous to that, he served in a variety of executive positions in marketing and product management. Among other roles, he was chief marketing officer at digital wedding planning company Zola, and vice president of marketing and e-commerce for fashion brand Intermix.
NYSE: HIMS
Key Data Points
Consistency wanted
Based on what Hims & Hers said about Chi in the disclosure, he seems like a safe pair of hands to take the COO wheel. But investors like consistency and longevity in the C-suites of their investments, and with the latest change, the company isn't demonstrating this at the moment.
