DocuSign CEO Departure Sends Stock Up: Bad Sign for Other Tech Execs?

High-growth stocks have taken it on the chin for months now, and investors' patience is starting to wane. For electronic signature pioneer DocuSign (NASDAQ: DOCU), a drop of more than 80% in its stock price since its highs almost a year ago finally led its board of directors to take aggressive action on Tuesday morning. The favorable reaction the move got from shareholders could spur similar decisions from other high-growth tech companies.

Effective immediately, Dan Springer has left his role as DocuSign's former CEO. With the company announcing that the executive "agreed to step aside," DocuSign has indicated that it's no longer willing to wait for a slower turnaround. Instead, it will seek a superior strategy to move into what it sees as its next growth phase. The stock rose in response and was up almost 4% shortly before noon ET on Tuesday.

DocuSign's board has already engaged a specialist to help lead a national executive search to help with succession planning and finding a new CEO. The idea will be to find someone who can take DocuSign beyond its best-known e-signature product and bolster its position in offering a wider range of document management services.

Source Fool.com