Investing.com -- Ingevity (NYSE:NGVT) Corporation saw its stock drop by more than 14% on Thursday following the sudden departure of its President and CEO, John Fortson.
The company announced in a press release that Fortson had stepped down from both his executive role and the board of directors, effective October 2, 2024.
The board of directors has appointed Luis Fernandez-Moreno, a current board member, as interim president and CEO while the company searches for a permanent replacement.
Fernandez-Moreno has been on the board since Ingevity’s spinoff in 2016 and brings over 40 years of experience in the specialty chemicals industry. He previously held leadership positions at Ashland (NYSE:ASH) Inc., Arch Chemicals, and Rohm & Haas Company.
"On behalf of the entire board, I want to thank John for his leadership and dedication to Ingevity over the past nine years," said Jean Blackwell, chair of Ingevity’s board of directors.
Blackwell credited Fortson for successfully leading Ingevity through its transformation into a standalone public company and expanding its global reach.
Fortson’s departure comes during a challenging time for the company, which has been focusing on strategic transformation and portfolio optimization.
Fernandez-Moreno said he firmly believes that "Ingevity is well-positioned for long-term success thanks to his [Fortson's] leadership."
Ingevity has also announced that it will release its third-quarter earnings on October 30, 2024.
The market reacted swiftly to the leadership change, with shares of Ingevity plunging amid investor concerns.