Radio New Zealand News reports: Investors shaved $251.9 million off Xero's value on Friday after the company revealed its North American head, Peter Karpas, has stepped down after just six months in the job.
The accounting software company's shares fell $1.97 to $20.99 before recovering slightly to close at $21.10.
Mr Karpas was appointed in February after having previously worked at PayPal, where he was general manager of small and medium-sized businesses in North America, exactly the target market Xero is chasing.
He was touted as a key person in Xero's drive to take on its major competitor in the United States, Intuit.
Xero's founder and chief executive, Rod Drury, said Mr Karpas had helped establish strong foundations for Xero in the United States market.
Xero rollout to US some years away
Xero's founder and chief executive Rod Drury says the roll-out to small and medium-sized United States-based accountants and bookkeepers is still four to five years away, given the culture and sophistication of that market.
Investors shaved $251.9 million off Xero's value last Friday after the company revealed its North American boss Peter Karpas has stepped down after six months in the job.
Xero's share price rose to a high of $45.99 following Mr Karpas' appointment on 12 February, which is more than twice the value of Friday's close at $21.10.
The shares continued to fall today, sinking as low as $20.57.
Mr Drury said Mr Karpas had helped establish strong foundations for Xero in the US market but he expected it will take more time before the company could crack the small and medium sized market.
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