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Jabil falls after placing CEO on paid leave amid internal investigation

Published 04/19/2024, 04:29 AM
Updated 04/19/2024, 04:31 AM
© Reuters.  Jabil falls after placing CEO on paid leave amid internal investigation

Jabil (JBL) saw its shares fall 3% in premarket trading Friday after the electronics components maker said its Chief Executive Officer Kenneth Wilson has been placed on paid leave as of April 15, pending the completion of an investigation into violations of corporate policies.

The company said in a regulatory filing it has appointed CFO Michael Dastoor as the interim CEO, effective April 19.

“We know only what was stated in the terse 8-K filing, which is not much, except that the alleged misconduct in question was not impactful to financial statements,” analysts said in their comments on the news.

“That said, if indeed the internal investigation leads to sanctions against Mr. Wilson, or outright termination, we believe Jabil has a deep bench of seasoned executives that would be capable of taking over,” they added.

In the meantime, the investigation is expected to present a short-term overhang for JBL stock, analysts added, though they maintained their Buy rating.

Wilson, who succeeded Mark Mondello as CEO, officially took over the role on May 1, 2023, after being named CEO in November 2022.

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