MW Jabil's stock declines as CEO Kenny Wilson goes on paid leave pending an investigation
By Emily Bary
Company says the investigation is related to company policies but not financial statements or reporting
Jabil Inc. shares declined in Thursday's extended trading after the company said its chief executive was going on paid leave pending an investigation related to company policies.
The electronics-manufacturing services company disclosed the news in a securities filing, saying that the investigation doesn't relate to or impact Jabil's $(JBL)$ financial statements or reporting.
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Chief Executive Kenny Wilson was placed on paid leave on April 15. Starting April 19, Chief Financial Officer Michael Dastoor will serve as interim CEO, after he was appointed to do so by the board of directors.
Dastoor has been the company's CFO since April 2018, and he's been with Jabil since 2000. Wilson, meanwhile, has been Jabil's CEO for almost a year, and he also joined the company in 2000.
Jabil shares were off 2.7% in after-hours trading Thursday. The stock is up about 5% over a three-month basis and up 54% over a 12-month span.
The company offered a disappointing outlook for the current quarter when it last reported results about a month ago.
See also: Jabil gives downbeat earnings outlook, sending its stock lower
"Despite revenue headwinds this year, which are expected to be short term, I'm pleased with the resiliency of our model and our team's demonstrated ability to execute," Wilson said at the time.
-Emily Bary
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April 18, 2024 19:42 ET (23:42 GMT)
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