United Technologies Corp.’s share price down, CEO Chenevert steps down with immediate effect, to be succeeded by CFO Hayes

United Technologies Corp. made an official announcement that its Chief Executive Officer, Louis Chenevert, has decided to leave the company. The statement comes at a time when the U.S.-based company is facing difficulties to increase growth in some of its major divisions. The announcement also comes right ahead of the companys investor meeting, which is scheduled for December 11th in New York.

Mr. Chenevert did not reveal the reasons why he decided to depart from the company. He said in a statement, cited by the Wall Street Journal: “My wife and I look forward to the next chapter of our lives. I am proud of the transformation of the company during my tenure.”

According to United Technologies, the departure of its Chief Executive Officer did not come as a reflection of any changes related to its performance and financial position. The companys spokesman, however, did not provide further explanation why its head is leaving. The companys shareholders were also left to make speculations about the reasons, which led to the retirement of Mr. Chenevert.

As reported by the Financial Times, one of the companys large investors commented on the CEOs decision: “It’s a radical change with no previous signalling. It’s a surprising way to behave but we’re going to reserve judgment until more information comes to light and we expect the company to justify something that looks rushed.”

Louis Chenevert took over the company six years ago. United Technologies Corp. said that he informed the board for his retirement as a Chairman and CEO with immediate effect.

The position of CEO was taken over by Gregory Hayes, who has been United Technologies Chief Financial Officer during the past six years. Mr. Hayes is to face the difficulties the company has been recently dealing with and will be expected to take measures in order to deal with companys underperforming stock.

United Technologies Corp. was down 1.37% to close at $108.79 per share yesterday, marking a one-year decrease of 1.28%. The company is valued at $100.56 billion. According to CNN Money, the 18 analysts offering 12-month price forecasts for United Technologies Corp. have a median target of $120.50, with a high estimate of $132.00 and a low estimate of $106.00. The median estimate represents a +10.76% increase from the last price of $108.79.