Planet Fitness, Inc. (NYSE: PLNT) watched its shares drop sharply soon after Friday’s opening bell, amid changes in its upper echelon.
The company has announced that Craig R. Benson, a member of the company’s Board of Directors, has been appointed Interim Chief Executive Officer, effective immediately. Benson’s appointment follows the decision by the Board to transition to new leadership, resulting in Chris Rondeau’s departure as the company’s CEO. Rondeau will continue to serve as a member of the company’s Board of Directors and will be nominated for re-election at the company’s 2024 Annual Meeting. Rondeau will continue to serve the company in an advisory role as contemplated under his existing agreements with the company to help ensure a smooth transition.
In connection with this transition, the Board is engaging a leading executive search firm to assist in a comprehensive search process to identify a permanent CEO, with both internal and external candidates being considered.
“As we enter the next chapter of Planet Fitness’ journey, the Board felt that now was the right time to transition leadership,” said Board Chairman Stephen Spinelli, Jr. “In today’s evolving environment, Planet Fitness is continuing to enhance our competitive advantage, capitalize on our size and scale, and drive further shareholder value. As a Board member and Planet Fitness franchisee, Craig knows our business well, while also bringing deep public and private sector executive leadership experience to this role. The Board is confident that he is the ideal leader to oversee the business during this transition period.”
PLNT shares plummeted $8.38, or 14%, to $51.42.