Chief financial officer Mark Flaherty is parting ways with the beauty supplies provider to ameliorate potential lawsuits against the company. Flaherty’s exit was mutual, with the former executive revealing that he plans to pursue other interests.
The U.S. Securities and Exchange Commission received files from Sally Beauty surrounding the move. Flaherty will no longer be CFO as of Friday, and it has nothing to do with clashing ideas surrounding the company’s operations, policies or practices.
He has served in that position since June 2008, and his departure will net him his base salary for 15 months in exchange for discarding any claims he might have against the company. Last year, Flaherty earned close to $1.7 million with a base salary just below half a million.
The former CFO will also receive the company’s health insurance for 15 months. Group vice president and chief accounting officer Janna Minton will serve as interim CFO until an official replacement is found.
SBH stock is down 7.2% Thursday. Shares were rising earlier this week on the heels of the company’s upgrade to the mid-cap index of the S&P MidCap 400 Index.
Sally Beauty last reported quarterly results in early August, revealing earnings of 47 cents per share, which was in line with estimates. Revenue came in at $998 million, just under the $1.1 billion that Wall Street projected.
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