Mechel CFO Sergey Rezontov leaves

  • Push-out Score suggests push-out forces
  • After about a year and a half in the position
  • Thanks for Rezontov
  • No successor named

(exechange) — Moscow, Russia, December 29, 2017 — Sergey Rezontov, finance chief of Mechel, leaves. As announced by Mechel PAO in a news release and in a regulatory filing published on Friday, December 29, 2017, Sergey V. Rezontov leaves his post as Chief Financial Officer at the Russian mining and metals company after about a year and a half in the position.

No company wants a CFO to flame out in the first years.

The exact date of Rezontov’s departure was not specified in the announcement. Obviously, it was an abrupt change.

Mechel has already removed the name of Rezontov as Chief Financial Officer from the leadership page.

Mechel did not name a replacement for the position of Chief Financial Officer.

“Personal reasons”

Rezontov’s departure from the CFO post is explained as follows. Mechel said: “Sergey Rezontov decided to leave the post of Mechel PAO’s chief financial officer for personal reasons.”

In the announcement, the company did not detail the personal reasons causing Rezontov to leave the position, leaving room for speculation. Generally speaking, “personal reasons” may include, among others, family-related reasons, health reasons or disagreement.

Precise information about Rezontov’s future plans was not immediately available.

Alarm signal

Generally speaking, it is often an alarm signal for investors when a CFO leaves the position with no date given and without a reasonable explanation.

“Is leaving the company”

Mechel said: “Chief Financial Officer Sergey Rezontov is leaving the company.”

Share price decline

The change follows a decline in the share price of Mechel PAO since January 2017.

Chaired by Igor V. Zyuzin

Mechel PAO is chaired by Igor V. Zyuzin.

Igor V. Zyuzin has been the Chairman of Mechel PAO’s Board of Directors since July 2010.

CEO: Oleg V. Korzhov

Oleg V. Korzhov serves as CEO of Mechel PAO. Oleg V. Korzhov has been holding the position of Mechel’s Chief Executive Officer since January 2014.

In the position of CFO since 2016

Sergey V. Rezontov has been Mechel PAO’s Chief Financial Officer since June 15, 2016.

Prior to his appointment, in 2014-2016 Rezontov headed Mechel’s financial department.

In 2013-2014, he worked as deputy chief executive officer and financial officer of Lysva Metallurgical Company UK OOO.

In 2012, he was deputy director of Mechel’s treasury operations department.

In 2006-2012, he worked first as a specialist and then as head of Mechel’s corporate financing department.

In 2004-2006, he was manager of the metals and mining team in the corporate clients department of Commerzbank (Eurasia) ZAO.

Rezontov graduated from Plekhanov Russian Academy of Economics with a degree in management.

At the time of Rezontov’s appointment as Chief Financial Officer at Mechel, Mechel PAO’s Chief Executive Officer Oleg Korzhov commented: “During his eight years in Mechel, Sergey worked his way from a specialist to a division director, and I gladly congratulate him with this new and important appointment. As chief financial officer, he will be in charge of corporate financing, treasury, investor relations, strategic and operational analysis, mergers and acquisitions activities. Today stable work of our financial function is more important to the company than ever, and I am sure that Sergey, who is a talented finance professional and an adept negotiator, who knows the company through and through, will be able to tackle the tasks facing him.”

Unexpected

Generally speaking, when a top leader announces to step aside with no successor in place, it is a sign that the move was unexpected and too early.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Sergey Rezontov’s move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.

Read the full story in the exechange report 1.2018 ($).