Good morning everyone,

It feels a little less manic today in terms of news flow.

The following have caught my attention so far:

Boohoo (LON:BOO)

  • Share price: 208.6p (+9%)
  • No. of shares: 1150 million
  • Market cap: £2,398 million

Interim Results

A long-standing favourite of readers here, I don't think anybody will mind that we cover this big-cap (for the same reasons we covered Next (LON:NXT) yesterday).

Besides today's news, the company last week announced the appointment of a new CEO. He is currently the COO at Primark (owned by Associated British Foods (LON:ABF) ).

This means that the two co-founders of the business (currently the co-Chief Executives) are stepping back a little.

One of them will become Executive Chairman (working on "long-term strategic direction") while the other will become "Group Co-Founder and Executive Director" (working on brand positioning and product development).

This can be interpreted as a strengthening of the management team, as the two co-CEOs are remaining with the business and are being joined by another very senior executive.

It could also be seen as carrying some risks, as there will be no independent director who is more senior than the new Executive Chairman (who is, with his family, the largest shareholder in Boohoo and its subsidiary prettylittlething).

What I like best is a clear separation of powers between a CEO and Chairman, with the CEO being in charge of running the show while the Chairman sits back and provides oversight on behalf of shareholders. When you have an Executive Chairman and a CEO, you run the risk of having a frustrated CEO who doesn't feel like he can truly impose his vision on the company.

Based on the new roles being taken up by the co-Founders, it sounds to me as though John Lyttle will be limited when it comes to putting his own unique stamp on the company, at least at the beginning of his tenure.

The company…

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