REA Group chief executive officer Simon Baker has unexpectedly departed from the company just five months after he was reappointed as its leader.
Simon Baker
(Credit: REA Group)
The company, which operates the realestate.com.au family of websites, announced the move late tonight, saying Baker had left, "effective immediately".
Baker originally took the role in August 2001. The company's statement today didn't explain the sudden move, saying only that its board wanted to thank Baker for his efforts and that it felt it was time for "new leadership to take the business to the next level".
It was a different story just five months ago in early March, when REA chairman Richard Freudenstein, announcing Baker's reappointment as CEO and managing director, said the board was "extremely pleased that Simon has agreed to extend his commitment to the company".
"His vision and drive have tremendously benefited the business over the last seven years and the company is now well-position to continue to grow into the future," said Freudenstein at the time.
Baker's departure comes at a sensitive time for REA Group, which at the end of this month will report its financial results for the year ended June. The company expects revenue of $152 million to $156 million (up between 41 and 46 per cent) and earnings before interest, taxation, depreciation and amortisation of $35 million to $37 million (up between 49 per cent to 57 per cent).
The group had more than 22,400 real estate agents paying to use its services by the end of June, up by 5,400 from 30 June 2007.
REA Group has appointed current chief financial officer, Georg Chmiel as Baker's temporary replacement until a permanent CEO is announced.
Baker's departure is likely to result in a significant payout to the executive. In March REA Group said the executive's contract provided for fixed remuneration of $600,000 per annum, with performance targets which could deliver an extra $300,000 per annum. The executive also stood to receive $200,000 of shares that would vest over three years and were contingent upon the group's long-term business plan.
Either party could terminate the CEO's contract with six months' notice. However if the company terminated Baker's contract, six months of fixed remuneration, or $300,000, would be payable.
REA Group staff were unavailable for comment.
Indeed the suddenness of this departure has me bordering on tears