- After about two years in the position
- Dave Keltner taking over in the interim
- Search for a successor
(exechange) — Atlanta, Georgia, January 10, 2018 — Peter Alexander, chief executive of BMC, leaves — “under mutual agreement”. It is an abrupt change. As announced by BMC Stock Holdings, Inc. in a news release and in a regulatory filing published on Wednesday, January 10, 2018, Peter C. Alexander leaves his post as Chief Executive Officer at the construction supply company after about two years in the position, effective immediately.
No company wants a CEO to flame out in the first years.
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 9 years, according to data compiled by exechange. Only 21 percent of the CEOs who departed over the past twelve months left the position within three years.
BMC will undertake a search for a successor.
Alexander’s duties will be taken over in the interim by Dave Keltner, a former Chief Financial Officer at Ferguson Enterprises, Inc.
Already a director
Keltner is already a director of BMC. Often a board member is a last resort, someone who is turned to in desperation when a company cannot find suitable candidates. On the other hand, directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Keltner understands the expectations and dynamics of the board and has knowledge of BMC’s organization, risk-management practices and strategy.
“To more fully leverage our national business portfolio and growth opportunities”
Alexander’s sudden departure from the CEO post is explained as follows. BMC said in a fairly blunt statement: “Now, as we pivot the organization to accelerate our strategic plan, the Board of Directors and Peter Alexander determined it was time to make a leadership change to more fully leverage our national business portfolio and growth opportunities.”
The phrase “to more fully leverage our national business portfolio and growth opportunities” opens the door to speculation.
Precise information about Alexander’s future plans was not immediately available.
“Leaving the Company”
BMC said: “President and CEO Peter C. Alexander, 61, is leaving the Company under mutual agreement effective immediately.”
BMC further said: “On January 9, 2018, BMC Stock Holdings, Inc. … reached a mutual agreement with Peter C. Alexander whereby he is leaving the Company and will no longer serve as the President and Chief Executive Officer of the Company effective January 10, 2018.”
Share price rise since January 2016
The change follows a rise in the share price of BMC Stock Holdings, Inc. since January 2016.
Chaired by David Bullock
BMC Stock Holdings, Inc. is chaired by David Bullock.
Bullock joins the Board of Directors of BMC Stock Holdings after serving as a BMC director since May 2014. From 2015 to 2017, Bullock served as Executive Vice President and Chief Financial Officer for Pinnacle Operating Corporation, an agricultural retail and wholesale distribution business.
In the position of CEO since 2015
Peter C. Alexander has been the Chief Executive Officer of BMC Stock Holdings, Inc. since December 1, 2015.
Alexander became a director and President and Chief Executive Officer of the Company upon the closing of the Merger.
He previously served as Chief Executive Officer of BMHC from August 2010 through the effective time of the Merger and served as a director of BMHC from January 2010 through the effective time of the Merger.
He previously served as President and Chief Executive Officer of ORCO Construction Distribution from 2005 to 2009.
Alexander also was Managing Partner of KinderOaks Business Services.
He previously served as President and Chief Executive Officer or in executive positions for several other companies in the technology, retail/distribution and service industries, including GE Capital, ComputerLand/Vanstar, Premiere Global Services and Coast to Coast Hardware.
Alexander holds a B.A. from The Ohio State University and an M.B.A. from The Pennsylvania State University.
In connection with Alexander’s departure, Alexander has also resigned as a director of the Board of Directors of the Company, effective January 10, 2018.
Read the full story in the exechange report 3.2018 ($).