A new succession plan at Workday means Chano Fernandez will step down as co-chief executive and be replaced by a former top executive at VMware. WDAY stock slipped on the news Wednesday.
The software maker late Tuesday announced Carl Eschenbach, a former chief operating officer at VMware, will become co-CEO effective immediately. Further, Workday plans to make him the sole CEO in early 2024.
Co-founder and co-CEO Aneel Bhusri will transition to executive chairman in early 2024, the maker of enterprise software said. Fernandez assumed the co-CEO role in mid-2020.
"With the change atop the sales and customer support organizations, which Mr. Fernandez ran, even with the financial guide reiterated, the perceived risk profile (of WDAY stock) likely has increased into the seasonally important Q4 results due at the end of February," BMO Capital Markets analyst Daniel Jester said in a note to clients.
WDAY Stock: Eschenbach To Open New Doors?
Eschenbach has served on Workday's board since 2018. Also, Eschenbach is a partner at venture capital firm Sequoia Capital.
"We believe Mr. Eschenbach will drive intensity up to another level at WDAY," Jefferies analyst Brent Thill said in a note. "In our view, he can open new doors for the company."
WDAY stock slipped 1.2% to close at 170.08 on the stock market today. Workday stock has retreated 36% thus far this year amid the bear market in technology stocks.
Pleasanton, Calif.-based Workday sells software for human capital management, such as payroll tools. Also, it has expanded into financial software.
WDAY stock holds a Relative Strength Rating of 58 out of a best-possible 99, according to IBD Stock Checkup.
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