Sempra CEO Debbie Reed leaves post at short notice

  • Push-out Score suggests push-out forces
  • After almost seven years in the position
  • Accolades and praise for Reed
  • Jeff Martin taking over
  • Reed spoke at length and said 201 words

(exechange) — San Diego, California, March 12, 2018 — Debbie Reed, chief executive of Sempra, leaves the position. It is a change at short notice. As announced by Sempra Energy in a news release and in a regulatory filing published on Monday, March 12, 2018, Debra L. (Debbie) Reed leaves her post as chief executive officer at the natural gas utilities holding company after almost seven years in the position, effective May 1, 2018.

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.

Reed leaves the company effective December 1, 2018.

Reed’s duties will be taken over by Jeffrey Walker (Jeff) Martin, currently chief financial officer of Sempra Energy.

“Robust leadership succession planning”

Reed’s imminent departure from the CEO post is explained as follows. Reed said: “Over many years, our board of directors has led a robust leadership succession planning effort and today’s announcement of new officer elections reflects the successful implementation of this planning.”

Precise information about Reed’s future plans was not immediately available.

“Step down/retire”

Sempra said: “After a 40-year career, Debra L. Reed, chairman, president and CEO of Sempra Energy (NYSE: SRE), has announced she plans to retire Dec. 1, 2018, and step down as CEO and president May 1.”

Share price decline

The change follows a decline in the share price of Sempra Energy since November 2017.

In the position of CEO since 2011

Debra L. Reed has been the Chief Executive Officer at Sempra Energy since June 27, 2011 and its President since March 1, 2017.

Reed was named Sempra Energy’s CEO in 2011 and assumed the additional role of chairman in 2012.

Prior to her appointment as CEO, Reed was Sempra Energy’s executive vice president.

Previously, from 2006 to 2010, she served as president and CEO of SDG&E and Southern California Gas Co. (SoCalGas).

She also was chief operating officer of the two utilities, after initially being appointed president of SDG&E in 2000.

Reed first joined the company in 1978 as an energy systems engineer at SoCalGas.

In 1988, she became the first female officer at SoCalGas and then served in a series of increasingly responsible leadership positions.

Currently, Reed is one of 27 female chief executive officers of Fortune 500 companies, and, from 2011 to 2017, she was recognized as one of Fortune magazine’s “Most Powerful Women in Business.”

Reed also was recognized by Forbes magazine as one of the nation’s most influential female CEOs.

Reed serves on the boards of directors of Halliburton Co. and Caterpillar Inc.

She is a member of The Business Council and the Business Roundtable, where she serves on the Energy and Environment Committee and the Tax and Fiscal Policy Committee.

She is a member of The Trusteeship, an affiliate of the International Women’s Forum.

Additionally, she serves on the Rady Children’s Hospital and Health Center Board of Trustees and Rady Children’s Hospital – San Diego Board of Directors, the board of councilors of the University of Southern California Viterbi School of Engineering and the Chairman’s Competitiveness Council of the San Diego Regional Economic Development Corporation, where she formerly served as chair.

Previously, she served on the boards of directors of Genentech and Avery Dennison Corp.

Reed graduated summa cum laude from the University of Southern California with a bachelor’s degree in civil engineering

From May until her retirement in December, Reed will continue to serve as Sempra Energy’s executive chairman.

Joseph A. Householder, currently corporate group president of infrastructure businesses for Sempra Energy, has been elected to succeed Reed as the company’s president.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Debbie Reed’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 12.2018 ($).