- Push-out Score suggests push-out forces
- After less than five months in the position
- Thanks for Dennis
- Michael Dodson taking over in the interim
- Search for a successor
(exechange) — San Jose, California, May 30, 2018 — Patrick Dennis, chief executive of Quantum, leaves. It is an abrupt change. As announced by Quantum Corp. in a news release and in a regulatory filing published on Wednesday, May 30, 2018, Patrick Dennis has left his post as Chief Executive Officer at the maker of data storage devices after less than five months in the role, effective May 25, 2018.
No company wants a CEO to flame out in the first months.
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 3 percent of the CEOs who departed over the past 12 months left the position within their first year. Around 10 percent left the position within two years, and 21 percent left the position within three years.
Quantum will undertake a search for a successor.
Dennis’s duties will be taken over in the interim by J.Michael Dodson, most recently Chief Financial Officer of Greenwave Systems.
“Pressing family matters”
Dennis’s sudden departure from the CEO post is explained as follows. Quantum said: “Dodson replaces current CFO Fuad Ahmad and will serve as interim CEO replacing Patrick Dennis, who has resigned his position to focus on pressing family matters.”
The phrase “pressing family matters” opens the door to speculation.
Precise information about Dennis’s future plans was not immediately available.
Quantum said: “Effective May 31, 2018, Quantum Corporation … appointed J. Michael Dodson as interim Chief Executive Officer …, replacing Patrick Dennis, who resigned from the Company as CEO and as a director effective May 25, 2018.”
Share price decline
The change follows a decline in the share price of Quantum Corp. since May 2017.
Chaired by Raghu Rau
Quantum Corp. is chaired by Raghu Rau.
He is the Executive Chairman of Quantum’s Board and a member of the Strategy Committee.
In the position of CEO since 2018
On January 16, 2018, Quantum Corporation announced that Patrick Dennis has been appointed as CEO of the Company, effective immediately.
Dennis succeeded Adalio Sanchez who had been serving as Quantum’s interim CEO since November 2017 while the Board searched for a permanent CEO.
Dennis had also been appointed to the Company’s Board of Directors.
Dennis served as president, CEO and a director of Guidance Software, a provider of cyber security software solutions, from May 2015 until its acquisition by OpenText in September 2017.
Before joining Guidance Software, Dennis served as Senior Vice President and Chief Operating Officer of EMC’s Cloud Management Division from October 2013 until April 2015, where he focused on helping enterprise IT groups make hybrid-cloud computing a meaningful part of IT strategy, and was responsible for long-range planning, mergers, and acquisitions, and divisional strategy.
Prior to holding this position at EMC, Dennis was Group Vice President of North American Storage Sales for Oracle Corporation from March 2012 until October 2013, where he led the development of Oracle’s commercial business in North America.
From September 2000 to March 2012, Dennis served in various positions at EMC.
Earlier in his career, he held leadership and technical roles at Eastman Kodak.
Dennis holds a B.S. in Information Technology from the Rochester Institute of Technology.
At the time of Dennis’s appointment as Chief Executive Officer at Quantum, Raghu Rau, Quantum’s chairman, had said: “Patrick has been a successful public company CEO and brings a broad range of experience in storage and software, including a proven track record leading business transformations. The other board members and I look forward to working closely with him to drive growth, cost reductions, and profitability and deliver long-term shareholder value.”
At the time of his appointment as Chief Executive Officer at Quantum, Dennis had said: “With its long-standing expertise in addressing the most demanding data management challenges, Quantum is well-positioned to help customers maximize the strategic value of their ever-growing digital assets in a rapidly changing environment. I’m excited to be joining the company as it looks to capitalize on this market opportunity by leveraging its strong solutions portfolio in a more focused way, improving its cost structure and execution, and continuing to innovate.”
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Patrick Dennis’s sudden 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 23.2018 ($).