WageWorks CEO Joe Jackson leaves post abruptly

  • After about 11 years in the position
  • Accolades, praise and thanks for Jackson
  • Edgar Montes taking over
  • Jackson will remain as Executive Chairman at WageWorks
  • Jackson spoke at length and said 116 words

(exechange) — San Mateo, California, April 5, 2018 — Joe Jackson, chief executive of WageWorks, leaves the position. It is an abrupt change. As announced by WageWorks, Inc. in a news release and in a regulatory filing published on Thursday, April 5, 2018, Joseph L. (Joe) Jackson leaves his post as Chief Executive Officer at the employee benefits company after about 11 years in the position, effective immediately.

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 9.5 years, according to data compiled by exechange. Only 37 percent of the CEOs who departed over the past 12 months left the position after more than 10 years.

Jackson’s duties will be taken over by Edgar O. Montes, most recently Chief Operating Officer of WageWorks, Inc.

Jackson’s move is part of a management shake-up also involving the positions of Chief Financial Officer; and General Counsel and Corporate Secretary.

“The Board has long seen Edgar as a likely CEO successor”

A reason for Jackson’s sudden departure from the CEO post was not explicitly given. Jackson said: “I have had the pleasure of working closely with Edgar for over 10 years, and the Board has long seen Edgar as a likely CEO successor. Edgar was the Board’s unanimous choice to become CEO.”

Jackson will remain as Executive Chairman at WageWorks

“Joe Jackson, who served as CEO and a member of the Board for more than a decade, will become Executive Chairman of the Board,” WageWorks said.

“Resigned”

WageWorks said: “On April 5, 2018, Joseph L. Jackson resigned from his position as Chief Executive Officer, effective as of April 5, 2018.”

“Not the result of any material disagreement”

“Mr. Jackson’s transition from Chief Executive Officer to Executive Chairman is not the result of any material disagreement with the Company regarding its operations, policies or practices,” WageWorks 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 WageWorks, Inc. since March 2017.

In the position of CEO since 2007

Joseph L. Jackson has been the Chief Executive Officer of WageWorks, Inc. since February 26, 2007 and its Chairman since December 8, 2016.

Jackson is and will remain a full-time employee of the Company.

He has more than 30 years of executive experience in the financial services industry.

He joined First Data Corporation, one of the world’s largest payment processing companies, in 1983.

He held a series of increasingly senior positions over the next 23 years, including Senior Vice President, Managing Director, and President for First Data Europe in the United Kingdom.

He also served as President of Western Union Commercial Services, a subsidiary of First Data.

He has previously served on the Board of Directors of Paymentech, Inc., and e-Duction, Inc.

Jackson has a B.S. in business administration from the University of Nebraska.

Read the full story in the exechange report 15.2018 ($).