- Push-out Score suggests push-out forces
- After less than two and a half years in the position
- Praise for Beck
- Kirk Hachigian taking over in the interim
- Search for a successor
(exechange) — Charlotte, North Carolina, February 28, 2018 — Mark Beck, chief executive of Jeld-Wen, leaves — “by mutual agreement”. It is an abrupt change. As announced by Jeld-Wen Holding, Inc. in a regulatory filing published on Wednesday, February 28, 2018, Mark A. Beck has left his post as Chief Executive Officer at the door and window maker after less than two and a half years in the position, effective February 27, 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 12 months was 9.2 years, according to data compiled by exechange. Only 21 percent of the CEOs who departed over the past 12 months left the position within three years.
Jeld-Wen will undertake a search for a successor.
Beck’s duties were taken over in the interim by Kirk S. Hachigian, most recently Chairman of the Board and former CEO of Jeld-Wen Holding, Inc.
A reason for Beck’s sudden departure from the CEO post was not explicitly given. Hachigian said: “Jeld-Wen remains committed to delivering long-term value to our shareholders through solid execution on all aspects of our operating model, including operational excellence, profitable organic growth, and strategic M&A. Our strong and experienced executive management team will work closely with me to make this leadership transition seamless for our customers, shareholders and employees.”
Precise information about Beck’s future plans was not immediately available.
Jeld-Wen said: “Jeld-Wen Holding, Inc. … today announced a leadership transition with Chairman of the Board, Kirk S. Hachigian, assuming the duties of CEO on an interim basis.”
Jeld-Wen further said: “The Board of Directors of the Company announced the departure of President and CEO, Mark Beck, effective February 27, 2018, by mutual agreement. Under the terms of his employment agreement, Mr. Beck’s service as a director also ended on that date.”
Share price decline
The change follows a decline in the share price of Jeld-Wen Holding, Inc. since January 2018.
In the position of CEO since 2015
Beck joined the Company as President and Chief Executive Officer in November 2015 and joined the Company’s board of directors in May 2016.
Beck joined the Company from Danaher Corporation, where he served as Executive Vice President overseeing Danaher’s Water Quality and Dental Platforms beginning in April 2014.
Previously, Beck spent 18 years with Corning Incorporated in a series of management positions with increasing responsibility, culminating in his appointment as Executive Vice President overseeing Corning’s Environmental Technologies and Life Science units in July 2012.
Earlier in his career, Beck spent six years in the residential construction industry.
In addition, Beck served on the board of directors of Dow Corning Corporation, a private manufacturing company, from October 2011 to April 2014.
Beck holds a B.A. in Business Management from Pacific University and an M.B.A. from Harvard Business School.
Generally speaking, when a top leader announces to step down with no permanent successor in place, it’s a sign that the move was unexpected and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Mark Beck’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 10.2018 ($).