Late last week, news broke that Planet Fitness had suddenly removed Chris Rondeau from his position as CEO and Chairman in what can best be described as a shocking move. The decision sent Planet Fitness’ shares plunging around 11% by the close of trading that day, though the stock had regained lost ground by the following Monday.
Before coming to Planet Fitness, Rondeau had served the company for nearly two decades in various roles, from CFO to President and CEO. He had been the CEO since the company went public in 2015, and his leadership was seen as instrumental in establishing Planet Fitness’ modern identity – emphasizing affordable health and fitness for casual gym-goers.
It’s unclear why the board decided to oust Rondeau. The company’s statement said only that a “mutual agreement” was made between Rondeau, the board, and the company, with Rondeau “stepping down” from his role. No other details were provided.
Planet Fitness has since named Lance Robertson, who has been the company’s Chief Operating Officer since 2018, as the interim CEO. Robertson has been an experienced executive both inside and outside the fitness industry, and most recently served as the President of Intuit’s Consumer Group. The board will consider both internal and external candidates for the permanent CEO role.
The move has laid bare the usually opaque workings of corporate boards. It’s highly unusual for the board of a major company to suddenly remove its top executive without providing any explanation, but it seems the board was determined to make a break from Rondeau’s tenure.
Company observers are hoping that the surprise move is not an indication of any broader problems with the business. Planet Fitness will be holding its next earnings call on August 12th, where they are expected to provide more details on the change in leadership. Investors will be watching closely, as they try to gain a better understanding of what could be in store for the company’s future.