SysGroup plc, the Liverpool-based IT services, cloud hosting and cyber security firm, announced that CEO Adam Binks will step down on June 26 and non-executive chairman Michael Edelson will retire.
The firm said its board has agreed that the 826,394 unvested options granted to Binks “may vest with immediate effect with all restrictions on all his options waived.”
SysGroup said Heejae Chae will join its board as executive chairman on June 26 “and will take day-to-day responsibility for the running of the company.”
Chae was previously CEO of Scapa Group plc and Volex Group plc. He is currently chairman of the remuneration committee at IP Group plc.
“On Heejae’s appointment to the board, Michael Edelson will step down to become a non-executive director,” said SysGroup.
“Michael Edelson has notified the board that he will subsequently retire from the board following the Company’s next AGM, due to be held in September 2023.”
Liverpool-based SysGroup also has offices in Manchester, Edinburgh, Bristol, Newport and London.
In a stock exchange statement, SysGroup said: “Adam has played a pivotal role in leading SysGroup’s transformation to an award-winning technology solutions provider successfully executing five acquisitions and growing the group’s revenue from £8 million to over £20 million during his tenure.
“Adam has agreed to remain as a consultant to the company for a period of six months to ensure the orderly and smooth transition of his responsibilities …
“In respect of Adam Binks’ departure, the board has agreed that the 826,394 unvested options granted to Adam Binks under the company’s 2020 LTIP Scheme may vest with immediate effect with all restrictions on all his options waived.
“Adam Binks has agreed to immediately exercise all his options granted under the 2018 and 2020 LTIP schemes, totalling 2,076,394 ordinary shares of 1p each.
“Adam Binks has further agreed to sell, and the company has agreed to buy, a total of 2,076,394 Ordinary Shares at a price of £0.375 per Ordinary Share.
“The company will hold these Ordinary Shares in treasury to satisfy the exercise of future share options under SysGroup’s share incentive schemes.
“The Remuneration Committee has agreed that the 482,235 unvested options granted to Martin Audcent, the company’s chief financial officer, under the company’s 2020 LTIP Scheme may vest with immediate effect with all restrictions on all his options waived …”
Outgoing chairman Edelson said: “On behalf of the board I would like to thank Adam for his unswerving commitment during his tenure at SysGroup.
“He has demonstrated excellent leadership through extremely challenging times, especially through recent events and his experience and knowledge of both the technology sector and capital markets has proved invaluable.
“I know I speak for all stakeholders by wishing him well for the future. The board is grateful for Adam’s work these past nine years.
“For me, whilst I am sad to be stepping down from the board of SysGroup, I am confident that now is the right time to step aside having been chair of the company since its admission to trading on AIM in 2013 and wish Heejae the best of luck with the position of executive chairman.”
Binks said: “I’ve thoroughly enjoyed my tenure at SysGroup, the last five years of which as CEO.
“Together with the team, we have built a solid business which can be used to bolt-on further acquisitions and continue to grow organically and I am looking forward to seeing SysGroup go through its next stage of growth under Heejae’s leadership.
“Finally, I would like to personally thank all of my board colleagues, the shareholders and the wider SysGroup team for their continued support over the years.”