EML Payments dumps CEO Ron Hynes for chairman Anthony Hynes to oversee EML 2.0 plan

The payments provider says alternative leadership is needed to oversee its ambitious turnaround strategy after sacking US-based CEO Ron Hynes following a brief tenure.

Payments company EML Payments has removed its Ron Hynes after six months

ASX-listed payment provider EML Payments has sacked its chief executive Ron Hynes after six months in the position, as its board says alternate leadership is required to execute the company’s strategy.

Mr Hynes, who was based in the US, and joined the company after leadership at Mastercard and JPMorgan, will receive six months’ notice but will not receive any equity grants given he will not be in employment on the relevant vesting dates.

He had been attempting to turn the Brisbane headquarted fintech into a more efficient and growth orientated organisation that improved returns for shareholders and offered better products to customers.

The change of direction by EML has resulted in current independent non-executive chair Anthony Hynes (no relation), who assumed the role in August after having joined the company also on June 30 becoming executive chair.

Shareholders have dumped EML following the removal of its CEO, with shares down 22.2 per cent to 70c on Monday.

The now former boss, Mr Hynes, was championed by EML upon his commencement in the role on June 30 for his “impressive value creation track record, growth bias and proven leadership capabilities”, which were aligned to the current and futures needs of the company and marketplace.

Emma Shand left the embattled group after nine months in April 2023.

It is the second consecutive CEO to have recently departed the embattled payments group after a sweeping overhaul announced in April 2023 saw Emma Shand leave after only nine months in the job and the board launch a review that will consider selling off the entire business.

This sparked an extensive worldwide search for a new CEO to replace Ms Shand until the US-based Mr Hynes was recruited and hired in June this year. Between Mr Hynes and Ms Shand, CEO responsibilities were held by interim boss Kevin Murphy for 15 months.

The appointment of Mr Hynes as executive chairman came as the company reiterated that the board and leadership was wholeheartedly committed to its medium-term strategy EML 2.0.

His remuneration during the appointment will be $67,000 per month, inclusive of his current chair fee, being the equivalent of the former CEO’s total fixed remuneration.

The company’s strategic blueprint aims to return the business to where double-digit transaction revenue growth in fiscal 2027 is common. It also seeks to increase efficiently such that the business has the money to deliver not only top line growth but create healthy margin expansion.

Mr Hynes on Monday said 2025 would be a formative year for the business as he looks to overturn the businesses following a difficult period that saw liquidators appointed to its Irish business.

“Our energised, passionate and broadened leadership team is building momentum, and I’m excited to lend them my further support as we work hard to build a high-performance culture and make 2025 a formative year for EML,” he said.

“I love the payments industry having dedicated a significant part of my professional life to it and the upside for EML following the successful execution of our strategy is significant.”

Mr Hynes was the founder and managing director of global payments businesseNett International, which sold for $940m in 2020.

Tom Cregan oversaw an extensive period of growth for EML under his control between 2012 and 2022. Picture: Annette Dew

His rapid rise through the ranks at EML follows a fast promotion to the chairman position in August when he replaced Luke Bortoli, a former Afterpay chief executive, who quit amid a boardroom stoush over whether company money was spent on personal expenses.

EML Payments is a global payments company that operates in Australia, the UK, Europe, and North America.

It processes and program manage physical, mobile, and virtual card solutions for gift, disbursement, incentives and rewards, general purpose reloadable, and supplier payments.

It grew into a major player in the payments world under the watch of Tom Cregan, who was the CEO for 10 years between 2012 and 2022 until he informed the board that he was considering stepping down, which viewed it as better for him to depart quickly, rather than recusing himself from a host of discussions.

EML’s share price reached a high point of nearly $6 in April 2021, but since fallen nearly 90 per cent as it faced a number of external and internal challenges of late. The past financial year saw it book a $26.5m loss for the 12 months until June compared to $284.8m in the 2023 period.

In January, EML moved to liquidate its Irish subsidiary, PFS Card Services Ireland, after it said the business is “no longer commercially viable and sustainable”. It said that while the business was solvent, it would burn a $20m hole in its pocket during the most recent financial year.

Other internal and external challenges have included the conclusion of its UK subsidiary PFSL’s regulatory remediation program and the settlement of PFS acquisition liabilities.

EML also completed the sale of Sentenia, including its Nuapay services business, to GoCardless at an enterprise value of €32.75m in September.

EML has also appointed non-executive director and audit and risk committee chair Ken Poutakidis as deputy chair.