Antony Catalano has stepped down from his position as chief executive of online real estate listings portal Domain Group just two months after its listing on the Australian Stock Exchange.
In a surprise announcement on Monday, the Domain board said it had accepted the resignation of Mr Catalano after four years at the helm.
The Domain share price dropped 17.17 per cent after the announcement, from 3.32?? at close on Friday to 2.75?? on Monday, its lowest point since it began trading at 3.69?? in November.
The price of shares in Fairfax Media, which has a 60 per cent stake in Domain after spinning it out last year, dropped 9.72 per cent over the same time period.
Mr Catalano became chief executive of Domain in 2013 and had worked with Fairfax Media since 1990, including a stint as property editor at The Age.
The company debuted on the ASX in mid-November as a $2.2 billion company after rapid expansion.
In a statement, Mr Catalano said he would need to relocate from Melbourne to Sydney to keep up with the demands of being a listed company chief executive, something he "wouldn't ask" his family to do due to schooling and other requirements.
"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," he said.
"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."
Fairfax Media is publisher of the Sydney Morning Herald and The Age. Mr Catalano holds both Fairfax and Domain shares, and it's understood he does not have an intention to sell.
A Citi research note from analyst David Kaynes released after the announcement described him as "a significant factor in the success of the spin-out ... with the next level of management not nearly as well known to investors".
Mr Kaynes maintained his sell position on the company, saying it "should trade at a discount" to competition REA Group due to its lower revenue base and requirement to compete on marketing and product development.
The abrupt departure sparks speculation Mr Catalano may have left the company to pursure other business ventures.
When he left Fairfax in 2008 he created his own media company, which was later bought back by Fairfax Media. He currently has a 12 month non-compete clause.
As Domain Group works to find a replacement, chairman Nick Falloon will act as executive chairman.
"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 Falloon said.
A note to clients from Mr Falloon said Mr Catalano had come to the decision over the Christmas break. The board was informed on the weekend.
The search for the new chief executive will span widely, including considering international applicants and internal candidates.
This could include former REA Group chief executive Greg Ellis who joined the Domain board in November.
The announcement of Mr Ellis' departure from the rival real estate company in 2013, for a job overseas, resulted in a 7.3 per cent drop in REA's share price. REA Group is majority owned by News Corp.
The Domain announcement said it would be business as usual for the company and that it was on track for its February half-year results.
Meanwhile, other media stocks enjoyed a strong day. Nine's share price jumped 6.89 per cent bringing it to a year high and Seven West Media leapt 4.55 per cent.
