- Push-out Score suggests push-out forces
- After about 10 years in the position
- Praise, thanks and good wishes for McDermott
- Search for a successor
- McDermott said 62 words
(exechange) — Irvine, California, February 21, 2018 — John McDermott, chief executive of Endologix, leaves the position. As announced by Endologix, Inc. in a news release and in a regulatory filing published on Wednesday, February 21, 2018, John McDermott leaves his post as Chief Executive Officer at the maker of treatments for aortic disorders after about 10 years in the position, effective no later than June 30, 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 CEOs who departed over the past 12 months was 9.2 years, according to data compiled by exechange. Only 35 percent of the CEOs who departed over the past 12 months left the position after more than 10 years.
To facilitate a smooth transition, McDermott has committed to remaining in his current role until a successor is found.
Endologix will undertake a search for a successor.
No reason given
In the announcement, Endologix did not explicitly explain the reason for McDermott’s move, opening the door for speculation.
Precise information about McDermott’s future plans was not immediately available.
Endologix said: “John McDermott is stepping down as the Company’s Chief Executive Officer.”
Endologix further said: “Endologix announced that John McDermott, its Chief Executive Officer, will step down effective as of a date no later than June 30, 2018.”
“Not the result of any disagreement”
“The transition was not the result of any disagreement with respect to the Company’s operations, policies or practices,” Endologix 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 Endologix, Inc. since April 2015.
Chaired by Dan Lemaitre
Endologix, Inc. is chaired by Dan Lemaitre.
In the position of CEO since 2008
John McDermott joined the Company in May 2008 as President and Chief Executive Officer and currently serves as the Company’s Chief Executive Officer.
McDermott has 25 years of executive management, sales, marketing, and finance experience in the vascular device industry.
From 2002 to 2007 he served as President of Bard Peripheral Vascular, a division of C.R. Bard, Inc. McDermott previously served as President of Global Sales for C.R. Bard’s vascular surgery and endovascular businesses.
Prior to that, he served for four years as President of C.R. Bard’s division IMPRA, Inc., where he was responsible for global operations, including sales, marketing, research and development, manufacturing, and finance.
From 1990 to 1996, McDermott served as Chief Financial Officer and later Vice President and Chief Operating Officer of IMPRA, Inc., prior to its acquisition by C.R. Bard.
He is an active leader within the vascular community and is currently on the board of directors of the International Society of Endovascular Specialists.
McDermott holds a B.S. in Finance from Arizona State University and an M.B.A from Western International University.
As a general rule, when a top leader announces to step aside with no successor available, it is a signal that the move was unplanned and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered John McDermott’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 9.2018 ($).