Doug Bergeron will step down from his roles as CEO and a board member at VeriFone, effective March 12, the point of sale terminal maker said today.
Chairman Richard McGinn has been named interim CEO, the company said in a press release. While McGinn will continue to serve on the VeriFone board, director Leslie Denend will assume the role of interim chairman. All leadership changes take effect March 12.
Bergeron has been CEO of VeriFone since 2001. In the company’s March 5 earnings call, he promised swift action—including a possible shakeup of senior management—to stem declines brought on by increasing competitive pressure from longtime rival Ingenico and the rise of newer payment-hardware rivals such as Square.
VeriFone's stock price plunged as much as 35% last month after the company forecast earnings that missed analysts' estimates. In December, VeriFone indicated it would no longer market its Sail mobile card reader directly to merchants. It later sold the assets of that business. An hour after the announcement Monday, VeriFone stock was up nearly 8% during after-hours trading.
“Our immediate focus will be on accelerating value creation for our stakeholders, including our shareholders, customers and employees, by leveraging our superior product and service portfolio,” McGinn said in the release. “At the same time, we will be redoubling our efforts to reinforce our competitive positioning within the electronic payment systems industry.”
In the release, Bergeron added, "Now is the right time for new leadership to take the baton and continue to drive the company forward."
Bergeron's departure comes at the same time that VeriFone disclosed it has engaged in business dealings with Iran that may have been prohibited by recently enacted sanctions against the Middle Eastern country, as well as a recently filed shareholder lawsuit alleging securities fraud.
VeriFone and Bergeron were also the subjects of inquiries by the U.S. Attorney and Securities and Exchange Commission over stock trades, though the company reports those inquiries were concluded without action.
Last month, VeriFone announced that it appointed a new chief financial officer, Marc E. Rothman, in anticipation Robert Dykes' retirement from that role.
VeriFone representatives declined to provide additional comment.