- Push-out Score suggests push-out forces
- After 17 years in the position
- Praise, thanks, words of regret and good wishes for Madison
- Search for a successor
- Madison said 69 words
(exechange) — Houston, Texas, May 15, 2018 — Don Madison, finance chief of Powell Industries, leaves. As announced by Powell Industries, Inc. in a news release published on Monday, May 14, 2018 and in a regulatory filing published on Tuesday, May 15, 2018, Don R. Madison leaves his post as Chief Financial Officer at the supplier of products for the management of electrical energy after 17 years in the position, effective October 1, 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 6.6 years, according to data compiled by exechange. Only 6 percent of the CFOs who departed over the past 12 months left the position after more than 15 years.
Powell Industries will undertake a search for a successor.
No reason given
In the announcement, Powell Industries did not explicitly explain the reason for Madison’s move, leaving room for speculation.
Precise information about Madison’s future plans was not immediately available.
Powell Industries said: “Don R. Madison, Executive Vice President and Chief Financial and Administrative Officer, plans to retire at the end of the fiscal year, after more than 17 years with the Company.”
Powell Industries further said: “On May 11, 2018, Powell Industries, Inc. … received notification from Don R. Madison, Executive Vice President and Chief Financial and Administrative Officer of the Company that Mr. Madison intends to retire effective as of October 1, 2018.”
Share price decline
The change follows a decline in the share price of Powell Industries, Inc. since June 2014.
Chaired by Thomas W. Powell
Powell Industries, Inc. is chaired by Thomas W. Powell.
CEO: Brett A. Cope
Brett A. Cope serves as CEO of Powell Industries, Inc. Brett A. Cope has been the Chief Executive Officer and President of Powell Industries, Inc. since October 1, 2016. Cope served as Chief Operating Officer and Senior Vice President of Powell Industries, Inc. from December 30, 2015 to October 1, 2016.
In the position of CFO since 2001
Don R. Madison has been Chief Financial & Administrative Officer and Executive Vice President at Powell Industries, Inc., since February 23, 2007 and served as its Chief Financial Officer since October 1, 2001.
Madison joined Powell in October 2001 as Vice President and Chief Financial Officer, and has served as Executive Vice President and Chief Financial and Administrative Officer since February 2007.
Generally speaking, when a top manager announces to step aside with no successor available, it is a sign that the move was unplanned and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Don Madison’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 21.2018 ($).