By Will Feuer
Shares of Planet Fitness suffered a decline following the removal of the gym chain’s longstanding Chief Executive, Chris Rondeau.
In morning trading, the stock plummeted approximately 13%, reaching a low of $52.03. This marks the lowest closing price since August 2020. Year-to-date, the shares have seen a decline of roughly 34%.
Rondeau, who held the position of CEO since 2013 and previously served as the chief operating officer for a decade, will remain on the company’s board. As part of his separation agreement, he will also be nominated for reelection at the 2024 annual meeting. Additionally, Rondeau will receive a salary for the next two years.
While the departure of Rondeau was not prompted by any unexpected financial events, he will continue to provide advisory support during the transition period.
Planet Fitness’ board has appointed interim CEO Craig Benson, a former governor of New Hampshire and a franchise owner of the gym chain. Benson’s appointment is effective immediately. The board has initiated the process of hiring an executive-search firm to identify potential candidates for the new CEO position, considering both internal and external options.
“The board believed that this was the appropriate time for a leadership transition,” stated Chairman Stephen Spinelli. He expressed his gratitude to Rondeau for his dedicated service.