Pressure mounts on AMC Networks: CEO exits after less than three months, major layoffs coming
After the abrupt resignation of CEO Randy Carey, his wife, Annabel Carey, who previously worked for the company as vice president of government relations, has been appointed interim CEO.
AMC Networks Holdings Inc. said Friday that it will release a special statement on Monday afternoon, with a statement explaining the reasons for its CEO Randy Carey’s abrupt departure.
“We thank Randy for his years of contributions and the great progress that we have made since his arrival,” the company said in a statement. “His departure is not related to a personnel issue, and we will be moving to find a new chief executive for the company.”
Carey resigned abruptly Feb. 1, one month after AMC Networks announced that it was taking a $1.9 billion impairment charge for the period between Jan. 1 and Feb. 1, due to the weak economy, and that it was expecting a full-year loss for the first quarter of 2012. Carey had been CEO for only three months.
“It is always disappointing when a leader leaves, but we have made tremendous progress and are making progress in our turnaround plan,” said Carey, who first joined the company in 2006. “I am proud of what I have accomplished here and where we are headed.”
As many had expected, Carey had been pushed out of the top spot by AMC Networks President David E. Tepper, a vice president of corporate development and chief investment officer, according to a source close to the company. Carey had been CEO at the company since 2011.
Carey’s departure at a time when it had been trying to turn around its fortunes was expected to fuel a lot of chatter and speculation from analysts and investors about the direction of the company.
The company has been a bellwether for most of the major Wall Street companies. Shares of AMC Networks slipped 0.5 percent in opening trading Friday to $3.69, the lowest price for the stock for the year, though it was still up 19 percent in 2012.
Carey’s resignation is the second major shakeup at AMC Networks in