- Push-out Score suggests push-out forces
- After almost 14 years in the position
- Praise for Sink
- Search for a successor
- Sink said 55 words
(exechange) — Indianapolis, Indiana, April 23, 2018 — Dan Sink, finance chief of Kite Realty, leaves. As announced by Kite Realty Group Trust in a news release and in a regulatory filing published on Monday, April 23, 2018, Daniel R. (Dan) Sink, Chief Financial Officer, leaves the real estate investment trust after almost 14 years in the position, effective June 30, 2018.
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 CFOs who departed over the past 12 months was 6.3 years, according to data compiled by exechange. Only 23 percent of the CFOs who departed over the past 12 months left the position after more than 10 years.
Kite Realty will undertake a search for a successor.
“To pursue other personal and professional interests”
Sink’s departure from the CFO post is explained as follows. Kite Realty said: “Mr. Sink stated that he plans to pursue other personal and professional interests.”
The phrase “to pursue other personal and professional interests” opens the door to speculation.
Precise information about Sink’s future plans was not immediately available.
“Leaving/his intention not to renew his employment agreement”
Kite Realty said: “Daniel R. Sink, Executive Vice President and Chief Financial Officer (“CFO”), will be leaving the Company when his employment agreement expires on June 30, 2018.”
Kite Realty further said: “On April 17, 2018, Daniel R. Sink, Executive Vice President and Chief Financial Officer of Kite Realty Group Trust …, notified the Company of his intention not to renew his employment agreement upon the agreement’s June 30, 2018 expiration.”
“Not due to any disagreements”
“Mr. Sink has confirmed that his decision to leave is not due to any disagreements with the Company with respect to any matter, including but not limited to any accounting-related policy or matter,” Kite Realty 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 Kite Realty Group Trust since July 2016.
Chaired by John A. Kite
Kite Realty Group Trust is chaired by John A. Kite.
Kite has served as Chairman of the Board since December 2008, as a trustee since the Company’s formation in March 2004 and as the Company’s Chief Executive Officer since the Company’s initial public offering in August 2004.
In the position of CFO since 2004
Daniel R. Sink has been the Chief Financial Officer at Kite Realty Group Trust since August 2004.
Dan Sink has been the Chief Financial Officer of Kite Companies since 1999.
His responsibilities include overseeing the real estate finance area, the corporate accounting function, corporate tax planning, company financial budgeting and corporate operations and administration.
From 1989 through 1999, Sink was employed by Olive LLP (subsequently merged into BKD LLP), one of the fifteen-largest accounting firms in the country, acting as a tax specialist in charge of the tax consulting for the central Indiana real estate/construction group.
Sink is a Certified Public Accountant, and earned his B.S. in Accounting from Indiana University.
Sink has served in his current role since the Company’s initial public offering in 2004, and he will be assisting with the transition until his contract expires.
Generally speaking, when a top manager announces to step aside with no successor available, it’s a signal that the change was unexpected and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Dan Sink’s 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 18.2018 ($).