Investment bank Babcock and Brown has confirmed today that it has shuffled its board and that its long-serving chief executive Phil Green has stepped down.
Green will relinquish his role immediately and will remain on the board and eventually become a non-executive director, a Babcock and Brown statement to the Australian Securities Exchange (ASX) said.
He will be replaced immediately by the company’s chief financial officer Michael Larkin.
Babcock and Brown’s founder and executive chairman Jim Babcock will also step down as chairman, but will remain on the company’s board and will later become a non-executive director.
The company’s deputy chairman, Elizabeth Nosworthy, will take his role.
Green and Babcock’s redeployment came amid widespread following rumours that they would step down as investors lost confidence in the company’s business model.
Babcock and Brown’s share price has tumbled from $31.08 a year ago to $3.45 as of August 19.
The company today also reported group profit of $175 million. The profit was hurt by non-cash impairment charges of $386 million and trading losses of $55 million.
The firm does not expect to pay dividends till 2009.
