- Push-out Score suggests push-out forces
- After about a year and a half in the position
- Accolades, praise, thanks and good wishes for Croom
- Search for a successor
- Croom spoke briefly and said 38 words
(exechange) — Mooresville, North Carolina, June 4, 2018 — Marshall Croom, finance chief of Lowe’s, leaves the position. As announced by Lowe’s Companies, Inc. in a news release and in a regulatory filing published on Monday, June 4, 2018, Marshall A. Croom, Chief Financial Officer, leaves the retail company after about a year and a half in the role, effective October 5, 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 6.7 years, according to data compiled by exechange. Only 17 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.
Croom will continue in his role as chief financial officer until his successor is appointed, and then remain with the company during a transition period until his retirement date.
Lowe’s will undertake a search for a successor.
No reason given
In the announcement, Lowe’s did not explicitly explain the reason for Croom’s move, leaving room for speculation.
Precise information about Croom’s future plans was not immediately available.
Lowe’s said: “[F]ollowing a successful 21-year career with the company, Marshall A. Croom plans to retire from the company, effective Oct. 5, 2018.”
Share price rise since June 2011
The change follows a rise in the share price of Lowe’s Companies, Inc. since June 2011.
Chaired by Robert A. Niblock
Lowe’s Companies, Inc. is chaired by Robert A. Niblock.
Robert Niblock has served as chairman and chief executive officer of Lowe’s Companies, Inc., since January 2005.
In the position of CFO since 2017
Marshall A. Croom has been the Chief Financial Officer of Lowe’s Companies, Inc. since March 3, 2017.
He is responsible for accounting, tax, treasury, investor relations, financial planning and analysis, internal audit, enterprise risk management and continuous improvement.
He has more than 30 years of financial and operational experience.
Croom joined Lowe’s in 1997 after an 11-year career with Ernst & Young.
He was promoted to chief risk officer in 2009 and also has served as senior vice president of finance, treasurer, assistant treasurer and senior vice president of merchandising and store operations support.
Croom has served on the board of directors of the Lowe’s Charitable and Educational Foundation since 2003.
He received a bachelor’s degree in accounting from Appalachian State University.
At the time of Croom’s appointment as Chief Financial Officer at Lowe’s, Niblock had said: “Marshall brings over 30 years of financial and operational experience to his new role and, importantly, possesses a deep understanding of virtually every facet of Lowe’s. We have confidence in Marshall’s proven leadership as we continue to focus and invest in the areas that meet consumers’ evolving expectations. We look forward to a smooth transition, given our CFO succession planning process.”
As a general rule, when a top leader announces to step aside with no successor in place, it’s 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 Marshall Croom’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 24.2018 ($).