Boston, MA, 02/27/2014 (usastockreport) – Symantec Corporation (NASDAQ:SYMC)’s stock has been plummeting in the market after its board of directors terminated the contract of its Chief Executive Officer and president, Steve Bennet. This came as a shocker considering Mr. Bennet had only been at the helm for 18 months.
The termination essentially raises lots of questions rather than answers on the company’s impending turnaround efforts. The Company has already grown to be one of the global leaders in the supply of security back up and availability solutions, waiting to see what the recent reshuffle will have on the company status in the market.
Symantec Struggles with Sales
Poor sales in the past quarters, has been a nagging problem to the company’s hierarchy amidst increased competition in the industry. The decline in the PC industry has on the other hand done no good in turning around the fortunes of the company. Symantec Corporation (NASDAQ:SYMC) also continues to struggle in its effort of shifting its consumer security business from a onetime license model to a subscription based model.
Effect of Mr. Bennet Contract Termination
The termination of Mr. Bennet contract had an immediate impact in the company’s rating in the market. Symantec’s stock has already been downgraded by seven research firms amidst a raging pattern of decline, in the industry.
Finding a willing and capable replacement may take some time, something that might have a substantial effect on its ability to implement its turnaround strategy. Bennet took over at the helm after the firing of Enrique Salem who had been at the helm for 3 years, inheriting a company that was struggling with costs of sales that made up 41% of the total revenue.
It is still unclear why Symantec Corporation (NASDAQ:SYMC)’s board of directors decided to let go of its CEO although it is being speculated that a slow turn around in the market, could have been the main reason behind the firing as well as a drop of 4.8% in total revenues for the fourth quarter.