Antony Catalano quits as Domain CEO, Fairfax announces

Antony Catalano has cited family reasons for his resignation as CEO of Fairfax spin-off Domain, just two months after its listing.

Antony Catalano with his wife Stefanie on Derby Day at Flemington. Pic: Aaron Francis

Fairfax Media has announced the surprise resignation of Antony Catalano as chief executive of real estate business Domain Holdings, just two months after it listed on the ASX.

In a statement to the stock market, Fairfax said the board had accepted the resignation of Mr Catalano, who took the helm in November 2013, and said he was leaving for family reasons.

Domain’s stock fell to a record low when the market opened, down 12 per cent to $2.92, in a sign of Mr Catalano’s value to the company.

The stock (DHG) ended the session down 17.17 per cent, or 57 cents, at $2.75, while Faifax (FXJ) ended closed down almost 10 per cent, after falling 7c to 65c.

A domestic and international search for a new CEO is commencing, Fairfax said.

During this time, Domain chairman Nick Falloon, who also chairs Fairfax, will act as executive chairman and Domain’s senior leadership team will report to him to ensure the continuing implementation of Domain’s strategy.

Mr Falloon said: “Antony informed the board that over the Christmas break he had realised that the demands of his role and his absence from the lives of his family were proving more challenging than he had expected and he had decided to put his family first.”

Mr Catalano said: “When I rejoined Fairfax in November 2013, I made a commitment to my young family that I could be there for them and do the job. It has become clear to me that doing the job of a listed company CEO the way it needs to be done means that I am not meeting that family commitment.

“It was also becoming apparent that I needed to relocate to Sydney and that was something I wouldn’t ask my family to do because schooling and family requirements would see young family members living in different cities. As it stands I have been away from home for the bulk of each week and it’s not fair on the family.

“I understand and regret that the timing of this decision is unusually short from Domain’s listing. But having been in the role for four years, I resign knowing that Domain has a great management team in place and I have every confidence in them and the business continuing on its current stunning trajectory.

“Having worked with Fairfax Media and Domain for more than 26 years, I am proud of what has been achieved, most importantly seeing Domain grow into the formidable business that it is today, capable of being a stand-alone listed entity.”

Investment bank Citi described the move as a “big surprise given the stock has only been listed for two months. We maintain our ‘sell’ rating on the stock”.

Citi analyst David Kaynes said: “The chief executive was a significant factor in the success of the spin-out. Antony Catalano was a key factor in the success of the separation of Domain from Fairfax in our view, with the next level of management not nearly as well known to investors.

“The reason given for the resignation is personal, he had ‘realised that the demands of his role and his absence from the lives of his family were proving more challenging than he had expected’ and an in-line trading update suggests the business remains on track.”

As a top 20 Fairfax shareholder, Catalano owns 0.32 per cent of the company’s stock, according to Bloomberg. Fairfax holds a 60 per cent stake.

Meanwhile in a trading update, Domain said it will report digital revenue growth of 22 per cent against the same period last year and total revenue growth of 13 per cent for the first half of fiscal 2018 on 19 February 2018.