At an investor day in Sydney last month, newly-appointed CEO of Challenger (ASX: CGF), Richard Howes, announced something that any new CEO would rather not. Howes announced that he was abandoning the 18 per cent pre-tax Group normalised return-on-equity (ROE) target that had been held by the company for the last 15 years. The market did not take kindly to this news, wiping off 16 per cent of Challenger’s market capitalisation over the subsequent 24 hours.
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