Fermi Inc. (NASDAQ:FRMI) shares plunged about 20% on Monday following a sweeping change in the company's leadership and governance. The co-founder, Toby Neugebauer, relinquished the role of Chief Executive Officer but will remain a member of Fermi's Board of Directors as the company moves forward with a reorganization it has labeled "Fermi 2.0."
The Board announced an immediate leadership adjustment that includes the elevation of Lead Independent Director Marius Haas to Chairman of the Board. The company described the actions as part of a comprehensive reset of its strategic direction and corporate governance structure.
To maintain continuity while the executive transition is underway, Fermi has set up an Office of the CEO. Operational control of day-to-day functions will be managed by two newly appointed Co-Presidents: Jacobo Ortiz Blanes, the former Chief Operating Officer, and Anna Bofa, who had served as a Board Advisor. Both Co-Presidents will report directly to Chairman Haas.
Additional board-level changes accompanied the management shuffle. Miles Everson resigned from his position as Chief Financial Officer and was elected to the Board of Directors. The company said it is in discussions with an individual to fill the Interim CFO role and expects to provide details within the week. Separately, Jeffrey S. Stein, co-founder of Breakpoint Advisory Partners, was also elected to the Board.
Fermi's Board has started a formal executive search for a new CEO and retained the search firm Heidrick & Struggles to assist in identifying candidates. The selection process will be led by a committee made up of Chairman Marius Haas and independent directors Lee McIntire and Cordel Robbin-Coker, who will screen and recommend potential candidates for the CEO role.
In addition to the leadership changes, Fermi disclosed plans to relocate its corporate headquarters to Dallas and to build out a corporate office presence at its Project Matador site in Amarillo. The company stated that these moves are intended to reflect its transition from a start-up phase toward operating as a scaled enterprise.
On the partnership front, Texas Tech University System Chancellor Brandon Creighton said the university remains committed to its collaboration with Fermi America. He added that discussions are underway to extend certain milestones in the lease agreement tied to Project Matador as the project advances.
Key developments
- Toby Neugebauer steps down as CEO but stays on the Board.
- Marius Haas named Chairman; Jacobo Ortiz Blanes and Anna Bofa appointed Co-Presidents to manage operations.
- Fermi initiates a formal CEO search with Heidrick & Struggles and plans a new Dallas headquarters plus a corporate presence at Project Matador in Amarillo.
Market response
Shares of Fermi dropped roughly 20% on the announcement of the leadership changes.
What remains pending
- Appointment of an Interim CFO and eventual selection of a permanent CEO following the board committee's work.
- Further details on timing and execution of the new headquarters move and corporate build-out at Project Matador.