Note there is a call at 5pm, details at the bottom of the announcement if anyone wants to tune in.

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@Tom73 Does this announcement portend a result below market expectations tomorrow??

@OxyBBear Well some investors think so - CSL dropped 5% on the news - like after hours trade (the close out).

SP reaction not unexpected, because Paul is the architect of the changes that marked a significant strategic shift for the company as announced last year. Of course, the Chair was very much behind those changes, as I understand it.

I guess we will hopefully find out more because the announcement does really give us much to go on.

"CSL Chair Dr Brian McNamee AO said: "Paul and the Board have determined that now is the right time for new leadership to continue to drive CSL's strategic transformation and performance."

Given that the Board endorsed the strategic changes proposed by Paul, then for them to now determine that the timeis right for him to go to me implies an issue with execution, or some information that the CEO might not be up to what is required in the future to ensure execution.

We'll see. The call is starting now.

Gordon Naylor the incoming CSL CEO was the chair of struggler Medical Developments (m/c $55m) for 5 years until December of last year.

Following the call, I expect tomorrow's result will not be good.

Brian McNamee made repeated references to the words "performance", "commercial performance", "execution", "portofolio", "sense of urgency".

Basically, my reading of this is that in the engagement between Paul McKenzie and the Board since the AGM on the priorities communicated at the AGM, the Board (and maybe Paul too) have concluded that the company is just not making fast enough progress across its priorities, as it required to restore shareholder value.

Strengthening the portfolio (i.e. new products) is a key requirement, and perhaps the Board has lost confidence that Paul M has the capability to succeed on that.

When you get to that point, a change has to happen, and it looks like it has.

So, I think we should expect a weak result tomorrow, and I am not sure Gordan will be offering much in the way of solutions. So, my guess is that he will commit to an update and a recovery plan in 100 days ... or next quarter.

How the market reacts is anyone's guess. Probably badly if the result significantly undershoots expectations.

Those hoping for an early recovery might capitulate, which will create volumes looking for an exit. Equally, some might be encouraged that the Board is willing to take tough decisions to instill a sense of urgency and get things back on track.

As long standing CFO in the glory days, Gordan Naylor has some credentials including the Sequirus turnaround.

In summary, anyone holding on to $CSL needs to decide whether they are prepared to buckle down for a few years. This ship was never going to turned quickly.

Let's see just how bad tomorrow's result is.

Listening to the announcement call, it seems that Paul McKenzie didn’t have what the board wanted to go forward (strategic direction) but has done a good job with the transition (execution of the current strategy). 

I liked the last question which basically said the board is responsible for setting strategy, so what gives, why is just the CEO going???

I wasn’t even thinking about attending the results announcement tomorrow, now I wouldn’t miss it for the world…

At some point, the board won't be immune either. They're just harder teeth to pull.

Solid Salary here, Gordon:

+ USD$7,003 per month accommodation allowance

Keep the buggers honest . IMHO