Rightmove shares fell 5.8% to 526.2p in late morning trading on Monday, after the group announced the resignation of Chief Executive Officer Peter Brooks-Johnson.
Johnson is set to leave following 16 years with the property company, and confirmed that he would depart after the release of the FY2022 results in February 2023.
Rightmove commented that Johnson would remain with the firm to assist with the search for his replacement, and help ensure a smooth handover process before he steps down.
“I have thoroughly enjoyed my journey at Rightmove, working with a hugely talented team who have taught me an immeasurable amount. Rightmove is an amazing company, with a clear focus and a relentless energy to innovate, which it has been a privilege to serve,” said Brooks-Johnson.
“I’d also like to thank our customers for their support and loyalty over the past 16 years. With Rightmove progressing well on its mission to make home moving easier and our strong trading from 2021 continuing into 2022, I have decided it is an appropriate time to seek a new challenge.”
“I continue to be hugely enthusiastic about the Company and the opportunities we see ahead. I have no doubt that Rightmove will continue to deliver for home hunters, customers and shareholders for many years to come.”
The company’s board assured investors that it has been trading in line with management expectations, with its full year guidance remaining unchanged.
Rightmove confirmed it was set to kick off its search for Brooks-Johnson’s replacement.
“Peter has made a significant contribution to the success of Rightmove over the past 16 years and whilst we are disappointed that he will be leaving the business, we understand his decision,” said Rightmove chair Andrew Fisher.
“Under Peter’s leadership Rightmove has helped make home moving easier and with a robust strategy and very strong team, the Company is well placed to pursue the opportunities ahead.”
“We will all miss Peter greatly and wish him continued success in his future career. I look forward to working with Peter to ensure a smooth transition and given Rightmove’s strong market position we are confident we will attract a high calibre successor.”
Why is Brooks-Johnson leaving?
Analysts pointed out the impact of Brooks-Johnson’s resignation on the company’s share price, highlighting his decision as the eleventh CEO in the FTSE 100 to step down so far in 2022.
“Mr Brooks-Johnson is the eleventh FTSE 100 boss to announce they are stepping down so far in 2022, although three of those changes are due to come into effect in 2023, including the one at Rightmove. This compares to a long-run average of between 12 and 13 changes a year,” said AJ Bell investment director Russ Mould.
Mould further speculated that Brooks-Johnson might be leaving the company at an opportune moment.
“[Some] investors could be forgiven for asking themselves whether the boss is getting out at an opportune time.”
“Rightmove’s shares are down by a third from December’s all-time high, as the tide seemingly turns against highly-rated growth stocks and markets fret about the impact of rising inflation and rising interest rates upon not just equity valuations but consumer confidence and possibly, by extension, the housing market.”
Rightmove and Brooks-Johnson both appear to attribute the CEO’s move to a desired change of pace, in light of 16 year at the same company. The executive currently ranks as the 43rd-longest serving boss in the UK’s headline index.
It remains to be seen how the property markets weathers the oncoming storm of inflation and rising cost of living, however it’s possible that Brooks-Johnson is indeed leaving Rightmove at the calm before the storm hits.