- Push-out Score suggests push-out forces
- After almost ten years in the position
- Thanks and good wishes for Mahoney
- Search for a successor
- Mahoney made a lengthy statement and said 73 words
(exechange) — Bethesda, Maryland, January 8, 2018 — Sean Mahoney, finance chief of DiamondRock, leaves. As announced by DiamondRock Hospitality Company in a news release and in a regulatory filing published on Monday, January 8, 2018, Sean M. Mahoney, Chief Financial Officer, leaves the real estate investment trust (REIT) after almost ten years in the position, effective March 31, 2018.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CFOs who departed over the past twelve months was 5.8 years, according to data compiled by exechange.
DiamondRock will undertake a search for a successor.
“To pursue other opportunities”
Mahoney’s departure from the CFO post is explained as follows. DiamondRock said: “Sean M. Mahoney, Executive Vice President and Chief Financial Officer, will leave the Company on March 31, 2018 to pursue other opportunities.”
The phrase “to pursue other opportunities” opens the door to speculation.
Precise information about Mahoney’s future plans was not immediately available.
DiamondRock said: “On January 8, 2018, the Company announced the departure of Sean M. Mahoney as the Company’s Executive Vice President, Chief Financial Officer and Treasurer, effective March 31, 2018.”
“Not related to any issues”
“The change is not related to any issues involving the Company’s financial results, business practices, internal controls or financial reporting,” DiamondRock said.
It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.
Share price decline
The change follows a decline in the share price of DiamondRock Hospitality Company since January 2015.
Chaired by William W. McCarten
DiamondRock Hospitality Company is chaired by William W. McCarten.
William W. McCarten has served as the Company’s Chairman of the Board of Directors and has been a member of the Company’s Board of Directors since the Company’s formation in 2004.
CEO: Mark W. Brugger
Mark W. Brugger serves as CEO of DiamondRock Hospitality Company. Mark W. Brugger has been the Chief Executive Officer at Diamondrock Hospitality Company since September 1, 2008 and has been its President since May 1, 2013. Brugger co-founded Diamondrock Hospitality Company in 2004.
In the position of CFO since 2008
Sean M. Mahoney is the Company’s Executive Vice President, Chief Financial Officer and Treasurer since September 2008.
Previously, he served as the Company’s Senior Vice President, Chief Accounting Officer and Corporate Controller from his hiring in August 2004 until September 1, 2008.
Prior to that, Mahoney served as a senior manager with Ernst & Young LLP in McLean, Virginia.
During 2002 and 2003, Mahoney served as a Director in the Dublin, Ireland audit practice of KPMG, LLP.
From 1993 to 2001, Mahoney worked in the audit practice of Arthur Andersen LLP.
Mahoney received a B.S. from Syracuse University in 1993.
Generally speaking, when a top manager announces to step down with no successor in place, it’s 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 Sean Mahoney’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 3.2018 ($).