On yesterday’s earnings call William Eccleshare announced a succession plan under which he will transition the Clear Channel Worldwide CEO Position to Scott Wells effective January 3, 2022:

With the business showing clear signs of recovery I have decided that now is the right time to implement our succession plan and for me to transition from the operational leadership of the company.  I’ll be assuming the new role of executive vice chairman starting January 3, 2022 and will be supporting the management transition and leading the strategic M&A activity in our ongoing efforts to optimize our portfolio.  I’m also delighted to announce that Scott Wells will take over as CEO while continuing in his current role as CEO of Clear Channel Outdoor Americas…

Insider’s take:  A positive step.  Clear Channel Outdoor stock has declined 45% since it went separated from IHeart Media on May 1, 2019, with Eccleshare in charge during the entire time.  Lamar grew 30% and OUTFRONT grew 1% in the same time period.

Stock Performance for Clear Channel Outdoor (blue), OUTFRONT (purple) and Lamar (green) for May 1, 2019 to July 29, 2021

The management change together with Eccleshare’s comment that Clear Channel Outdoor is going to shed low margin businesses suggests that the company will eventually sell Europe or South America or both and keep North America.  A North American Clear Channel Outdoor will be easier to manage and easier for shareholders to understand.  Spinning off the international assets can’t happen soon enough.

Clear Channel Outdoor finished the day up 10.3%.  OUTFRONT rose 2.2%.  Lamar rose 1.6%.  The S&P 500 rose 0.5%.

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