Avita CEO steps down after first strike

Avita Medical (ASX:AVH) is replacing its top executives and has launched a review of its remuneration policy after shareholders rejected the company’s remuneration report last month.

In a statement, Avita said its managing director and CEO William Dolphin has agreed to step down as CEO and from the board effective immediately.

Current COO and CFO Timothy Rooney will take over as interim CEO until the end of the financial year, and the company will hunt internally and externally for a permanent replacement during this time. Dolphin will stay on in an advisory capacity during the transition period.

The announcement does not state that the resignation is linked to the ‘first strike’ on executive pay the company was dealt last month.

Avita Medical chairman Dalton Gooding has meanwhile followed through with plans to step down after announcing his intention during the shareholder meeting.

The Avita board has appointed Ian Macpherson as interim chairman until a replacement is found.

Finally, the company revealed it has commenced a review into its remuneration policy to address the concerns of the shareholders voting against its latest report.

“Shareholders have been very clear they expect a more transparent remuneration structure with objective KPIs aligned to shareholder returns,” Macpherson said. “This will form the basis of a new remuneration policy for the board and senior company executives.”

One of Avita’s largest shareholders, Bioscience Managers, had been one of the most outspoken critics of the company’s remuneration policy.

Days before the vote, the company released a statement complaining that, under Gooding’s tenure, the company’s share price had fallen from a 10-year high of over $5 to just 10 to 12 cents.

Avita Medical (ASX:AVH) shares were trading 3.23% lower at $0.09 as of around 12.30 pm on Wednesday.