Quiksilver Inc. announced today it’s replacing its top executives, handing the reigns to former President Pierre Agnes who takes over as CEO immediately.

Former CEO Andy Mooney has left the company and CFO Richard Shields is also stepping down. Thomas Chambolle, currently CFO for Quik’s European operations will take over his position next week.

In addition to the CEO and CFO changes, Quiksilver’s Asia regional president, Greg Healy, will become president of the company. Bob McKnight, who founded the company, will take back the chairman role.

“The board has great confidence in Pierre’s ability and skills to lead our company,” McKnight said in the statement. “His primary focus will be on improving operational execution and efficiencies, and identifying growth opportunities, especially in the U.S. wholesale channel.”

Quiksilver shares dropped as much as 16 per cent after the announcement, hitting as low as $1.90, the biggest decline since September.

The management overhaul follows a restatement of earnings after Quik recently admitted it made errors recording a writedown of the sale of its stake in Surfdome Shop Ltd.