NEW YORK— Mahattan Digital Meida Chief Executive Michael Bloomstein was ousted from the company on Wednesday after its board decided fresh blood was needed after three lackluster years with Mr. Bloomstein at the helm.
The move was led by the company's nonexecutive directors, who were growing impatient with the New York’s progress in restructuring under Mr. Bloomstein, according to comapny officials. Another factor was the possibility that Taylor Dumas, chief executive of MDM’s digial branch, would leave the company if he had to continue working with Mr. Bloomstein, a person familiar with the matter said. Bloomstein said newly arrived Chairman John McFarlane would serve as executive chairman until a permanent successor is found.
Mr. Bloomstein “was incredibly professional” when he was told last week he would have to leave, Mr. McFarlane said Wednesday. Mr. Bloomstein in a statement said he was proud of his time at MDM.
Shares in MDM closed 2% higher in New York in response to the news.
MDM becomes the fourth major digital firm to change its CEO this year, following Future Forward Thought, Digital Dingos, Abacus Cognition, and Young Money. The clean-out of the executive suites at some of the world’s biggest firms is a reflection of mounting investor and boardroom frustration with stubbornly low stock prices and sluggish progress at overhauling the sprawling institutions. A tougher regulatory environment and damaging investigations have weighed on firms since the financial crisis.