NextEd Group appoints Rob Arthur as new CEO to lead next phase of transformation
NextEd Group (ASX:NXD) has appointed Rob Arthur as Chief Executive Officer, effective 19 August 2026, with outgoing CEO Mark Kehoe stepping down. The transition positions the incoming leader to steer the next phase of one of Australia’s largest listed private education providers.
NextEd operates a national campus network spanning Adelaide, Brisbane, Gold Coast, Melbourne, Perth and Sydney, alongside recruitment offices worldwide. The leadership change arrives as the Board looks to build on transformation work already underway across the business.
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A leadership handover at a pivotal moment
The appointment follows a period the company describes as one of the most demanding the sector has confronted. Chair Sandra Hook credited Kehoe with navigating significant regulatory change and sustained industry uncertainty during his tenure.
Under Kehoe’s leadership, the company noted Greenwich market share growth and the commencement of campus rationalisation and other cost initiatives that lay the groundwork for the business going forward. The Board framed the change as continuity rather than a reset, with foundational cost and restructuring work already in motion.
Sandra Hook, Chair
“Mark stepped into the CEO role at one of the most challenging periods the international education sector has faced… Mark is widely respected by our people and led with integrity.”
For investors, the messaging is deliberate. The transformation groundwork is already commenced, and Arthur inherits an operating plan in progress rather than a blank slate.
Who is Rob Arthur?
Arthur is an experienced CEO, CFO and strategy leader with more than 20 years’ experience delivering organisational transformation, operating model redesign and performance uplift across Australia and Europe. His background spans education-sector expertise across early childhood, primary and secondary environments.
He has led large multi-site operations and advised on governance, financial management and student-safety frameworks. Senior roles in national infrastructure and top-tier advisory firms have seen him lead strategy execution, technology modernisation and M&A programs.
Key credentials include:
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More than 20 years in organisational transformation and performance uplift
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Deep education-sector expertise across multiple learning environments
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Leadership of large multi-site operations
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M&A, strategy execution and technology modernisation experience
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Chartered Accountant and member of the Australian Institute of Company Directors
Rob Arthur, incoming CEO
“I’m looking forward to joining NextEd at an important point in its evolution. I see real opportunity to drive growth and strengthen outcomes for students across the portfolio…”
What the remuneration structure signals to investors
Executive pay packages typically combine fixed remuneration with a Short-Term Incentive (STI) and a Long-Term Incentive (LTI). The STI rewards annual performance, while the LTI ties a portion of pay to multi-year targets through performance rights, which are entitlements to receive shares only if specific hurdles are met. This design is intended to align the CEO’s incentives with shareholder outcomes.
Arthur’s package leans heavily toward performance-linked pay tied to EBITDA growth across FY27 to FY29, a structure the Board has framed around a transformation-driven earnings uplift. He is also required to hold $200,000 of NextEd shares on-market by 30 June 2027, aligning his personal stake with shareholders.
| Component | Detail |
|---|---|
| Fixed remuneration | $507,500 p.a. (base $475,000 + superannuation $32,500), reviewed annually by the Board |
| Short-Term Incentive (FY27) | Up to 50% of base salary; 70% financial measures (NPAT, EBITDA and/or revenue), 30% strategic; pro-rated for part-year start |
| Long-Term Incentive | 15,000,000 non-transferable performance rights, subject to EBITDA performance hurdles FY27–FY29 (issued within 15% capacity under ASX Listing Rule 7.1) |
| Minimum shareholding | $200,000 of NXD shares on-market by 30 June 2027 |
Vesting of the LTI is not guaranteed. Each tranche is subject to EBITDA performance hurdles, meaning the value only crystallises if earnings targets are achieved.
LTI performance rights tied to multi-year EBITDA targets
The LTI structure embeds an earnings-growth roadmap across three financial years. The tranches escalate in size, with the largest allocation weighted toward the final year of the plan.
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FY27: up to 3.0 million rights subject to an EBITDA performance target
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FY28: up to 4.5 million rights subject to an EBITDA performance target
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FY29: up to 7.5 million rights subject to an EBITDA performance target, with a potential FY30 catch-up
The vesting methodology is straightforward. No rights vest below the applicable EBITDA threshold; 50% of a tranche vests at or above threshold but below target; and 100% vests at or above target. Where EBITDA falls between threshold and target, the Board may determine, at its absolute discretion, that more than 50% but less than 100% vests.
For the FY29 tranche, if the threshold or target is not achieved in FY29 but is met in FY30, the corresponding rights may vest based on the FY30 outcome, provided Arthur remains employed at the relevant vesting time. The escalating tranche sizes suggest the Board is structuring incentives around an accelerating earnings profile over the three-year plan.
What’s next for NextEd shareholders
Arthur steps into a role where transformation work, including campus rationalisation and cost initiatives, has already commenced. His mandate centres on driving growth and strengthening outcomes across the portfolio.
A near-term item to watch is the FY27 STI framework. The specific KPIs will be determined by the Board following approval of the company’s transformation plan, making that approval a trigger for further detail on performance targets.
The appointment is subject to an initial six-month probationary period, with incentives aligned to a multi-year EBITDA horizon running FY27 to FY29 and the potential FY30 catch-up. No specific revenue or earnings guidance figures were disclosed in the announcement, leaving the transformation plan approval as the next signpost for investors assessing the earnings trajectory.
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