- Push-out Score suggests push-out forces
- After eleven years in the position
- Accolades, praise and thanks for Sheffield
- Matt Gallagher taking over
- Sheffield will remain as Executive Chairman at Parsley
- Sheffield spoke at length and said 141 words
(exechange) — Austin, Texas, January 9, 2018 — Bryan Sheffield, chief executive of Parsley, leaves. His departure is made public at an early stage. As announced by Parsley Energy, Inc. in a news release and in a regulatory filing published on Tuesday, January 9, 2018, Bryan Sheffield leaves his post as Chief Executive Officer at the independent oil and natural gas company after eleven years in the position, effective January 1, 2019.
It is the end of an era.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past twelve months was 8.9 years, according to data compiled by exechange. Only 35 percent of the CEOs who departed over the past twelve months left the position after more than ten years.
It is a long goodbye. The announcement of Sheffield’s move comes up to twelve months prior to his planned departure from the post of CEO.
In general, a top executive who announces the departure very early may be considered a lame duck.
Sheffield’s duties will be taken over by Matt Gallagher, currently President and Chief Operating Officer at Parsley Energy, Inc.
“Culmination of a thoughtful and thorough succession planning process”
Sheffield’s departure from the CEO post is explained as follows. Ray Alameddine, the Company’s lead director, said: “This announcement is the culmination of a thoughtful and thorough succession planning process in which the Board and Bryan unanimously agree that Matt Gallagher is the ideal person to serve as Parsley’s next CEO and lead Parsley into its next stage of growth and development.”
Sheffield will remain as Executive Chairman at Parsley
“Mr. Sheffield will serve as CEO through the end of 2018, in the newly-created position of Executive Chairman throughout 2019, and as Chairman of the Board thereafter. As part of the succession plan, the Board has determined to separate the roles of Chairman and CEO at the time of Mr. Sheffield’s transition to Executive Chairman,” Parsley said.
Parsley said: “Parsley Energy, Inc. … announced that next year, in January 2019, Chairman of the Board and Chief Executive Officer Bryan Sheffield will be succeeded as CEO by Matt Gallagher, the Company’s current President and Chief Operating Officer.”
Parsley further said: “On January 9, 2018, Bryan Sheffield, Chairman of the Board and Chief Executive Officer of Parsley Energy, Inc. … informed the Board of Directors … of the Company that he intends to step down from his position as the Company’s Chief Executive Officer effective January 1, 2019.”
“Not a result of any disagreements”
“The changes in Mr. Sheffield’s relationship with the Company described above were not a result of any disagreements with the Company on any matter relating to the Company’s operations, policies, or practices,” Parsley 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.
In the position of CEO since 2008
Bryan Sheffield has served as the Company’s Chief Executive Officer and Chairman of the Board since January 2017.
Sheffield founded the Company as a two-person start-up in 2008 and has led the Company’s growth since that time, including, prior to January 2017, as President, Chief Executive Officer, and Chairman of the Board.
He began his career trading options and interest rate futures in Chicago and Gibraltar, before spending 18 months with Pioneer Natural Resources (“Pioneer”), where he began his oil and gas career.
Sheffield graduated from Southern Methodist University in 2001 with a Bachelor of Business Administration in Finance.
Sheffield is expected to continue as Executive Chairman of the Board through December 31, 2019, at which time he would retire as an employee and officer of the Company, but continue serving as Chairman of the Board, a non-employee director position.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Bryan Sheffield’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 ($).