Changes are coming. On Monday, news spread that the Netflix CFO is stepping down.
But why? Did something bad happen? Did he get ousted, similar to John Schnatter? Actually, none of those things happened. Though the market doesn’t seem too pleased — the Netflix stock closed down 1.32%.
Netflix CFO Stepping Down: August 13, 2018
Today, Netflix (NASDAQ:NFLX) said David Wells will be leaving the company, but not before helping the Los Gatos, California-based company find the woman or man that will take his place.
In 2017/2018, we’ve seen a number of company leaders leave due to a scandal. Harvey Weinstein; John Schnatter. It’s a vicious, never-ending cycle. But that’s not what is happening with Netflix and David Wells.
According to Wells, who posted a statement Monday, he is leaving to pursue other areas. Moreover, both Wells and Netflix decided that, after the company’s “strong financial position,” now is the time to “identify the next financial leader” for the streaming service.
Is This Going to Cause Problems?
Change is inevitable, though there are some worries about the Netflix CFO leaving the company.
For starters, Wells has been with the company for 14 years and has been CFO for 8 of those years. During that time, Wells saw Netflix grow into an international streaming behemoth. So, essentially, it’s like Netflix is losing one of its star players.
However, a change could also prove to be a good thing. During the last Netflix earnings, the company did not meet subscriber forecasts. Likely because it needs to focus on other things moving forward, like Netflix original content.
That may not have been Wells’ area of expertise. Therefore, if the new Netflix CFO has a way with original content, the next earnings report could be one for the books.
Either way, whether losing Wells will be a good or bad thing for the company, there’s no denying the man played a major part in Netflix’s current success.
We wish him the best of luck on his next journey, which he hopes will “focus more on philanthropy.”
What do you think of the Netflix CFO departing from the company? Any idea as to who you would like his successor to be? Apparently, both internal and external candidates are being considered.
Featured Image: twitter