- Push-out Score suggests push-out forces
- After less than two years in the position
- Praise, thanks and good wishes for Cashiola
- Mike Galvan taking over in the interim
- Search for a successor
(exechange) — Houston, Texas, March 20, 2018 — Mark Cashiola, finance chief of C&J Energy, leaves. It is an abrupt change. As announced by C&J Energy Services, Inc. in a news release on Tuesday, March 20, 2018, Mark C. Cashiola leaves his post as Chief Financial Officer at the energy services company after less than two years in the position, effective immediately.
No company wants a CFO 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 CFOs who departed over the past 12 months was 6 years, according to data compiled by exechange. Only 19 percent of the CFOs who departed over the past 12 months left the position within two years, and 35 percent left the position within three years.
C&J Energy will undertake a search for a successor.
Cashiola’s duties will be taken over in the interim by Michael S. (Mike) Galvan, currently Chief Accounting Officer of C&J Energy Services, Inc.
“To pursue other opportunities”
Cashiola’s sudden departure from the CFO post is explained as follows. C&J Energy said: “Mark Cashiola, C&J’s Chief Financial Officer …, has resigned effective immediately to pursue other opportunities.”
The phrase “to pursue other opportunities” opens the door to speculation.
Precise information about Cashiola’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for investors when a CFO leaves the post abruptly and without a reasonable explanation.
“There are no issues involving the Company’s financial statements, internal controls or financial reporting procedures that led to Mr. Cashiola’s departure,” C&J Energy 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.
Chaired by Patrick Murray
C&J Energy Services, Inc. is chaired by Patrick Murray.
Murray joined the Company’s Board of Directors in January 2017 and currently serves as Chairman of the Board.
CEO: Don Gawick
Don Gawick serves as C&J’s President and Chief Executive Officer, a position he has held since June 2016.
In the position of CFO since 2016
Mark C. Cashiola has been the Chief Financial Officer of C&J Energy Services, Inc. (formerly, C&J Energy Services, Ltd.) since June 15, 2016.
Cashiola joined C&J in January 2011 and previously served as the Company’s Vice President – Controller and Chief Accounting Officer.
He has over 19 years of financing and accounting experience, the majority of which has been spent in the energy industry.
Prior to joining C&J, Cashiola was Senior Controller for Precision Drilling Trust beginning in late 2008 through 2010 and Assistant Controller for Grey Wolf, Inc., prior to its acquisition by Precision, from 2005 through late 2008.
Cashiola began his career in public practice working for Arthur Andersen, L.L.P. and KPMG, L.L.P. for a combined six years, most recently as Audit Manager.
Cashiola received a B.B.A. in Accounting from Texas A&M University and is a Certified Public Accountant in the State of Texas.
Generally speaking, when a top manager announces to step down with no permanent successor available, it’s a signal that the move was unexpected and too early.
Generally speaking, potential causes for an unexpected management change may be, among others, health reasons, family reasons and surprising new career opportunities.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Mark Cashiola’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 13.2018 ($).