- Push-out Score suggests push-out forces
- After less than two years in the position
- Praise and thanks for Dennerlein
- Search for a successor
(exechange) — Reston, Virginia, May 14, 2018 — Bob Dennerlein, finance chief of Internap, leaves. It is a change at short notice. As announced by Internap Corporation in a news release and in a regulatory filing published on Monday, May 14, 2018, Robert M. (Bob) Dennerlein leaves his post as Chief Financial Officer at the provider of data center services after less than two years in the position, effective June 30, 2018.
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 6.6 years, according to data compiled by exechange. Only 15 percent of the CFOs who departed over the past 12 months left the position within two years, and 31 percent left the position within three years.
Internap will undertake a search for a successor.
“To pursue other opportunities”
Dennerlein’s imminent departure from the CFO post is explained as follows. Internap said: “Robert M. Dennerlein is stepping down as Chief Financial Officer to pursue other opportunities, effective June 30, 2018.”
The phrase “to pursue other opportunities” opens the door to speculation.
Precise information about Dennerlein’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CFO leaves the post at short notice and without a reasonable explanation.
Internap said: “Robert M. Dennerlein is stepping down as Chief Financial Officer.”
Internap further said: “On May 11, 2018, Internap Corporation … and Robert Dennerlein decided that Mr. Dennerlein’s employment would cease as of June 30, 2018.”
“Not related to any disagreements”
“Mr. Dennerlein’s decision to step down was not related to any disagreements with the Company on any matter relating to its operations, policies, practices or any issues regarding financial disclosures, accounting or legal matters,” Internap 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 Internap Corporation since October 2017.
Chaired by Daniel C. Stanzione
Internap Corporation is chaired by Daniel C. Stanzione.
Stanzione serves as Non-Executive Chairman of the Board since 2009.
CEO: Peter D. Aquino
Peter D. Aquino serves as CEO of Internap Corporation.
Peter D. Aquino has been Chief Executive Officer and President of Internap Corporation since September 19, 2016.
In the position of CFO since 2016
Robert M. Dennerlein has been Chief Financial Officer of Internap Corporation since November 14, 2016.
Bob Dennerlein leads INAP’s financial operations, information technology, investor relations and procurement organizations.
He has over 25 years of financial leadership experience that spans over 13 years in the information technology solutions industry.
Prior to joining INAP, Dennerlein most recently served as Chief Financial Officer for Dialogic (Communications technology solutions).
He presided over returning Dialogic to profitability, and selling the company to Montreal based Novacap in a take private transaction.
Before Dialogic, Dennerlein was CFO for Raritan (Datacenter technology solutions), where he led the company’s efforts in raising private equity growth capital.
His leadership enabled a successful turnaround that expanded Raritan’s portfolio of new products and technologies.
Prior to joining Raritan, Dennerlein served as CFO for Globix (Hosting, Networking, Managed Services Provider), where he successfully closed and integrated two mergers and initiated a successful company turnaround marked by double digit growth in revenue and EBITDA.
Dennerlein began his career in public accounting with PricewaterhouseCoopers LLP.
From 1984-2003, Dennerlein served in progressively senior positions at Bongrain Cheese USA (Director of Business Analysis), International Specialty Products, Inc. (Senior Director, Financial Services), Agere Systems, Inc. (Director of Accounting and External Reporting) and Opnext, Inc. (Vice President and Controller).
Dennerlein, a Certified Public Accountant, serves on the Board of Directors of Catapult Acquisition Corporation and earned both his Bachelors of Science in Accounting and Masters of Science in International Business from Seton Hall University.
He will continue to serve as INAP’s Chief Financial Officer until the retention of his successor to ensure an orderly transition of his responsibilities.
As a general rule, when a top leader announces to step down with no successor in place, it is a sign that the move was unexpected and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Bob Dennerlein’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 21.2018 ($).