For the second time in five years, Nine Entertainment (ASX:NEC) has lost its CEO amid allegations of non-financial issues within the company.
Nine announced on Thursday that CEO Mike Sneesby would depart the company at the end of September after a 3½-year tenure. He replaced Hugh Marks, who resigned in November 2020 following revelations of a relationship with a former colleague.
While there are no such rumors surrounding Sneesby, his departure comes as the company prepares to release an external report next month on allegations of workplace harassment and bullying, particularly within its newsroom.
Before assuming the role of CEO, Sneesby had served as CEO of Nine’s successful streaming platform, Stan, for nearly eight years. He initially joined Nine in 2007.
This announcement follows Nine’s struggles with a toxic culture in its TV newsroom (similar to its rival, Seven) and the launch of an external review prompted by allegations of abuse of power and “drunken, lecherous behavior.”
Nine’s shares experienced a slight decline on Thursday, reaching a new 52-week low of $1.18. They were down 0.6% in afternoon trading at $1.19. Since the bullying and harassment allegations surfaced in May, the shares have fallen from around $1.50 to $1.20 at Thursday’s close.
During Sneesby’s time as CEO, the shares have declined by 57%. However, it would be inaccurate to attribute this loss solely to his leadership. In addition to the loss of Meta revenues, factors such as surging inflation, high interest rates, weak consumer spending, and a sharp decline in advertising (which has impacted rival media companies as well) have contributed to the decline.
The loss of revenue from the Meta deal has further exacerbated the situation for Nine and other media companies, leading to job cuts at Seven West Media and News Corp.
After a year marked by controversy, Sneesby informed staff that 2024 had been “one of the most challenging” of his career, testing the company’s resilience.
“Despite the intense scrutiny, my focus has not wavered from achieving the best outcomes for our people and for Nine,” he stated.
Following months of reflection, Sneesby and the board agreed that now was the appropriate time for refreshed leadership, particularly as the company works to address its workplace culture and awaits the outcomes of the external review, expected to be delivered in late October.