- Push-out Score suggests push-out forces
- After 19 years in the position
- Praise for McFarland
- Search for a successor
(exechange) — Suffolk, Virginia, February 6, 2018 — Clyde McFarland, finance chief of TowneBank, leaves. It is a change at short notice. As announced by TowneBank on Tuesday, February 6, 2018, Clyde E. McFarland leaves his post as Chief Financial Officer at the community bank after 19 years in the position, effective in March 2018.
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 CFOs who departed over the past 12 months was 6.1 years, according to data compiled by exechange. Only 6 percent of the CFOs who departed over the past 12 months left the position after more than 15 years.
TowneBank will undertake a search for a successor.
No reason given
In the announcement, TowneBank did not explicitly explain the reason for McFarland’s imminent move, opening the door for speculation.
Precise information about McFarland’s future plans was not immediately available.
TowneBank said: “Hampton Roads based TowneBank … announced today the upcoming retirement of the bank’s founding Chief Financial Officer, Clyde E. McFarland, Jr., that is expected to be effective in March 2018.”
Share price rise since September 2011
The change follows a rise in the share price of TowneBank since September 2011.
Chaired by G.Robert Aston, Jr.
TowneBank is chaired by G.Robert Aston, Jr.
Aston has served as Chairman of the Board and Chief Executive Officer since the founding of TowneBank in 1998.
In the position of CFO since 1999
McFarland joined the TowneBank organizers operating from the Aston family garage on a part-time basis in the fall of 1998 and joined the bank full time on March 1, 1999.
He has served as the company’s Chief Financial Officer since that time.
In order to fully ensure a high level of continuity in the financial management of the company as it plans for the next decade of growth, McFarland will be retained by the company on a consulting basis through March 2022 to assist with those efforts.
He will also serve as a member of the TowneBank Outer Banks Board of Directors in Southern Shores, North Carolina where he maintains a seasonal residence.
Generally speaking, when a top leader announces to step down with no successor in place, it’s a signal that the move was unexpected and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Clyde McFarland’s imminent 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 7.2018 ($).