This Stock Had Closed 10% Higher On Friday, And Company Just Announced An Interim CEO – Do You Own The Shares?

Open Text Corporation (OTEX) on Monday announced the appointment of James McGourlay as Interim Chief Executive Officer, effective immediately.

McGourlay has been with Open Text for more than 25 years, starting in 1997, and has held senior positions across different business segments, the company said. He will replace Mark J. Barrenechea.

The Cloud and AI company added that it has formed a CEO Search Committee to identify the company’s next permanent CEO. The committee will be composed of independent directors David Fraser, Bob Hau, Goldy Hyder, and Kristen Ludgate. On Stocktwits, retail sentiment around OTEX fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours while message volume remained at ‘high’ levels.

OpenText added that the company will continue to work with its financial advisors to explore portfolio-shaping opportunities that enhance focus on its core Information Management for AI business and deliver long-term shareholder returns. There is no assurance the work will result in a transaction, and further, there is no timeframe for the conclusion of the process, it said.

"After a thorough review of the business and its performance, and as we look ahead to the company's future, the Board believes there is an opportunity to enhance shareholder value by growing revenue in our core Information Management for AI business and redeploying capital from the non-core assets," said P. Thomas Jenkins, Executive Chair of the Board and Chief Strategy Officer.

The company also announced the appointment of Savinay Berry, who previously served as Executive Vice President and Chief Product Officer at OpenText, as Chief Technology Officer, and the establishment of an executive committee to support the leadership team during the transition.

OTEX stock is up by over 9% this year and by about 4% over the past 12 months. 

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