Hatch Departs as YouGov CEO, Shakespeare Returns

Steve Hatch has stepped down as CEO of YouGov, with co-founder Stephan Shakespeare resuming on an interim basis the role he previously held for ten years. The firm also reported 'modest' underlying growth, in a half year trading update, with both the Data Products and Research divisions growing.

Current NED Deborah Davis, who joined YouGov in June last year becomes interim Non-Executive Chair of the Board as Shakespeare moves across; and NED Andrea Newman replaces Davis as Chair of the Remuneration Committee.

Former Meta Platforms exec Hatch was announced as the new CEO in April 2023 and started in the role on 1st August that year. By the latter date, GfK had agreed to sell its European Consumer Panel (CP) business to YouGov, as part of its deal to merge with NielsenIQ (NIQ), and the buy went through a year ago. The acquisition and integration of this very large division made forecasting of future revenue and growth complicated and YouGov apparently got this wrong, making overly-bullish and ill-defined statements about revenue: in June '24 its share price plunged more than 50% after a trading update warning of lower-than-expected sales and profits. Last month Gatemore Capital Management, a 1.3% shareholder in YouGov, published an open letter to the Board complaining of 'management missteps' over eighteen months amounting to a 'disaster', and urging the CEO change which has now occurred.

Today YouGov announced that 'The Board and Steve Hatch have mutually agreed that he will step down from his position'. The Board will commence a recruitment process to appoint a new CEO, and plans to appoint a new NED 'in due course', completing the loop of replacements. Shakespeare thanked Hatch on behalf of the Board 'for his commitment and support over the past 18 months, especially during a challenging time for the Company', adding 'Steve played a crucial role in building and leading a strong leadership team and ensuring a smooth integration of the CPS acquisition. The Board and YouGov team wish him every success in his future endeavours'.

Hatch himself stated: 'My sincere thanks to all at YouGov for their hard work and inspiration over the last 18 months. It is the right time for a change and I wish Stephan, the Board and all at YouGov the very best for the future'.

Gatemore Managing Partner Liad Meidar has today welcomed the change in leadership but restated the belief that the company should look at a possible sale.

Meanwhile in a trading update for the financial half year ending 31st January 2025, the company reported 'modest growth on an underlying basis reflecting stabilisation in our core business, with strong growth on a reported basis due to the inclusion of the CPS acquisition'. The Group said performance was 'in line with management expectations given the previously communicated slowdown in sales booking that we witnessed towards the end of the last financial year'. Both the Data Products and Research divisions saw low-single-digit growth on an underlying basis, while CPS 'is continuing to perform in line with expectations and investment in several new growth initiatives has commenced'. Formal reporting for the period is expected at the end of March, and looking ahead YouGov said it is expecting to deliver continued modest year-on-year revenue growth on a reported basis over the course of the second half of FY25.

Web site: www.yougov.com .