Dover CEO Bob Livingston leaves at short notice

  • Push-out Score suggests push-out forces
  • After around nine years in the position
  • Accolades, praise and thanks for Livingston
  • Rich Tobin taking over
  • Livingston said 68 words

(exechange) — Downers Grove, Illinois, March 20, 2018 — Bob Livingston, chief executive of Dover, leaves. It is a change at short notice. As announced by Dover Corporation in a news release and in a regulatory filing published on Tuesday, March 20, 2018, Robert A. (Bob) Livingston leaves his post as Chief Executive Officer at the conglomerate manufacturer of industrial products after around nine years in the position, effective April 30, 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.

Livingston’s duties will be taken over by Richard J. (Rich) Tobin, most recently Chief Executive Officer of CNH Industrial, N.V.

Already a director

Tobin is already a director of Dover. 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, Tobin understands the expectations and dynamics of the board and has knowledge of Dover’s organization, risk-management practices and strategy.

“This is the appropriate time for a transition given the anticipated early May completion of the Apergy spin”

Livingston’s imminent departure from the CEO post is explained as follows. Michael F. Johnston, Chairman of Dover’s Board of Directors, said: “Rich’s appointment and the orderly transition announced today are the culmination of a succession plan that the Board of Directors has been engaged in for the past several years. Bob and the Board believe this is the appropriate time for a transition given the anticipated early May completion of the Apergy spin.”

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

“Retire”

Dover said: “[F]ollowing a 35-year career, including a successful nine-year tenure as its President and Chief Executive Officer, Robert A. Livingston will retire on April 30, 2018.”

Dover further said: “Livingston will retire effective as of April 30, 2018 and will resign from the Company’s Board of Directors … concurrent with his retirement.”

Share price rise since January 2016

The change follows a rise in the share price of Dover Corporation since January 2016.

Chaired by Michael F. Johnston

Dover Corporation is chaired by Michael F. Johnston.

He has been the Chairman of the Board of Dover since 2016.

In the position of CEO since 2008

Robert A. Livingston has been the Chief Executive Officer and President of Dover Corporation since December 1, 2008 and June 2008 respectively.

He joined Dover with the acquisition of K&L Microwave in 1983.

Livingston has a B.S. in Business Administration and Mathematics from Salisbury University.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Bob Livingston’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 13.2018 ($).