Shares of CS Disco (NYSE:LAW) are down 26% in early trading Tuesday after the company's co-founder and CEO, Kiwi Camara, announced he will step down as the chief executive and as a member of the board.
The company named board member Scott Hill as interim CEO. Hill has served as a member of Disco's board of directors since June 2021 and was previously CFO of Intercontinental Exchange.
“It has been an incredible experience growing this business from an idea to an industry leader,” said Camara. “Disco is in excellent hands. I have every confidence in Scott Hill and the Disco team as they manage this transition and carry on Disco’s proud tradition of combining world-class engineering with a deep love and respect for the law to build product experiences that lawyers love.”
Needham & Company analysts said that based on their conversation with management the appointment of Hill is likely temporary and the company will search for a permanent successor likely from outside the company.
The analysts also highlighted that a material item to note is the effective cancellation of Mr. Camara's CEO Performance Award, which required Mr. Camara to remain as CEO to vest.