- Push-out Score suggests push-out forces
- After less than two years in the position
- Thanks for Garcia
- Paul Meister taking over
- Garcia spoke at length and said 123 words
(exechange) — New York, January 29, 2018 — Fabian Garcia, chief executive of Revlon, leaves. It is an abrupt change. As announced by Revlon, Inc. in a news release and in a regulatory filing published on Monday, January 29, 2018, Fabian T. Garcia has left his post as Chief Executive Officer at the cosmetics company after less than two years in the position, effective January 28, 2018.
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 9.2 years, according to data compiled by exechange. Only 10 percent of the CEOs who departed over the past twelve months left the position within two years, and 21 percent left the position within three years.
Garcia’s duties were taken over by Paul Meister, currently President at MacAndrews & Forbes Incorporated.
Already a director
Meister is already a director of Revlon. 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, Meister understands the expectations and dynamics of the board and has knowledge of Revlon’s organization, risk-management practices and strategy.
Garcia’s move is part of a management shake-up also involving the position of Chief Operating Officer.
“To pursue other opportunities”
The management change is explained as follows. Revlon said: “Fabian Garcia, President and Chief Executive Officer of Revlon, has stepped down from his position to pursue other opportunities.”
The phrase “to pursue other opportunities” opens the door to speculation.
Precise information about Garcia’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for investors when a CEO leaves the position abruptly and without an understandable explanation.
Revlon said: “On January 28, 2018, Fabian T. Garcia informed the Board of Directors that he was resigning from his position as President and Chief Executive Officer of Revlon, Inc. …, and Revlon Consumer Products Corporation …, effective immediately. Mr. Garcia also resigned as a director of the Company.”
Share price decline
The change follows a decline in the share price of Revlon, Inc. since February 2017.
Chaired by Ronald O. Perelman
Revlon, Inc. is chaired by Ronald O. Perelman.
Ronald O. Perelman has been Chairman of the Board of Directors of the Company and of Revlon Consumer Products Corporation, the Company’s wholly-owned operating subsidiary (Products Corporation), since June 1998 and a Director of the Company and of Products Corporation since their respective formations in 1992.
In the position of CEO since 2016
Fabian T. Garcia has been the Chief Executive Officer and President at Revlon, Inc. since April 15, 2016.
Fabian Garcia has served as the Company’s and Products Corporation’s President and Chief Executive Officer since April 2016 and has also served as a director of each such corporation during such period.
Prior to joining the Company, Garcia served in senior executive positions at the Colgate-Palmolive Company, including most recently as its Chief Operating Officer, Global Innovation and Growth, Europe/South Pacific & Hill’s Pet Nutrition, a position he held since 2010, with expanded responsibility for Hill’s Pet Nutrition beginning in 2012.
From 2007 to 2010, Garcia was EVP, President, Colgate-Latin America & Global Sustainability. Garcia joined Colgate in 2003 as President, Colgate-Asia Pacific.
Prior to joining Colgate, Garcia was Senior Vice President of International Operations at the Timberland Company.
During the past 5 years, Garcia has served on the boards of directors of the following public reporting companies: Revlon, Inc. (April 2016 – present); Products Corporation (April 2016 – present); and Kimberly-Clark Corporation (2011 – present).
Garcia is expected to continue as an employee of the Company in an advisory role through the end of February 2018 to assist the Company with the transition of his duties and responsibilities.
At the time of Garcia’s appointment as Chief Executive Officer at Revlon, Ronald O. Perelman, Chairman of Revlon, had said: “I want to welcome Fabian as Revlon’s President and CEO. Fabian has demonstrated a long track-record of success at Colgate in terms of driving growth and profitability, and in successfully leading and expanding global organizations. He has the global strategic, marketing, sales, financial and operational leadership experience to successfully lead Revlon into the future.”
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Fabian Garcia’s sudden 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 6.2018 ($).