Description: The ousting of Sebastien St-Louis as Hexo Corp.’s chief executive officer from the pot producer he founded nearly a decade ago came shortly after an investor sent a letter to the board of directors demanding his resignation due to his poor stewarding of the company’s finances.
Source: BNNBloomberg.ca – video report
Date: Oct 20, 2021
Questions for discussion:
- Summarize the criticisms leveled at the CEO and by extension, the overall management of the firm.
- What might explain the response by the board of directors and the quick exit by St-Louis?
- Do you think this might be a growing phenomena whereby investor analysis has such a dramatic influence on management?