- Push-out Score suggests push-out forces
- After less than three years in the position
- Accolades, praise, thanks and good wishes for Ellison
- Responsibilities redistributed
- Search for a successor
- Ellison made a lengthy statement and said 65 words
(exechange) — Plano, Texas, May 22, 2018 — Marvin Ellison, chief executive of JCPenney, leaves the position. It is a change at short notice. As announced by J.C. Penney Company, Inc. in a news release and in a regulatory filing published on Tuesday, May 22, 2018, Marvin R. Ellison leaves his post as Chief Executive Officer at the department store chain after less than three years in the position, effective June 1, 2018.
No company wants a CEO 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 CEOs who departed over the past 12 months was 9.6 years, according to data compiled by exechange. Only 20 percent of the CEOs who departed over the past 12 months left the position within three years.
While Ellison will remain a director and CEO through June 1, he will step down from his position as chairman of the board effective immediately.
JCPenney will undertake a search for a successor.
The position of Chief Executive Officer is currently not filled. For the time being, Marvin Ellison’s responsibilities are redistributed.
Ellison’s imminent departure from the CEO post is explained as follows. JCPenney said: “Chairman and CEO Marvin R. Ellison has notified the Company of his decision to resign from his role to pursue another opportunity with Lowe’s Companies, Inc.”
Ellison will be CEO at Lowe’s
Lowe’s Companies, Inc. announced that Marvin R. Ellison has been named president and CEO, effective July 2, 2018. He will also join Lowe’s board of directors at that time. Ellison succeeds Robert A. Niblock, who previously announced his intention to retire.
Lowe’s Companies, Inc. announced the move on Tuesday, May 22, 2018.
Lowe’s is a home improvement retailer.
“Not a result of any disagreement”
“Mr. Ellison’s resignation is not a result of any disagreement with the Company or its management,” JCPenney 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 J.C. Penney Company, Inc. since December 2016.
In the position of CEO since 2015
Marvin R. Ellison is chief executive officer at JCPenney. Ellison joined JCPenney in November 2014 as president and CEO-designee until he assumed the position of CEO in August 2015.
He was appointed to the additional position of Chairman of the Board in July 2016.
Ellison has over 30 years of experience in the retail industry, spending 12 of those years at the Home Depot. In his most recent position, Ellison served as executive vice president of U.S. stores.
In this role, he was responsible for all sales, operations and strategic initiatives for stores in all 50 states, Guam and Puerto Rico.
Prior to that, he was president of Home Depot’s northern division, a role in which he had responsibility for the sales and operations of more than 700 stores in 21 states.
Previously, he was senior vice president of global logistics, with oversight of all domestic distribution, transportation, store and appliance delivery, import distribution and international logistics throughout the United States, Canada, Mexico, China and more than 35 other countries.
Before joining Home Depot, Ellison spent 15 years with Target Corporation in a variety of operational roles, including corporate director of asset protection.
Ellison currently serves on the board of the National Retail Federation and North Texas Leaders and Executives Advocating Diversity (LEAD), as well as on the board of FedEx, serving as a member of the compensation, nominating & governance, and information technology oversight committees.
He is actively involved in philanthropic efforts, including mentoring programs aimed at developing at-risk youth.
As a strong proponent of higher education among minority students, Ellison has joined the independent governing board of his alma mater, the University of Memphis.
Ellison was named to Fortune’s “World’s Greatest Leaders in 2016,” and recognized as the “2016 Corporate Executive of the Year” and one of “300 Most Powerful Executives in Corporate America” in 2017 by Black Enterprise.
He earned a BBA degree in marketing from the University of Memphis and MBA degree from Emory University.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Marvin Ellison’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 22.2018 ($).