- Push-out Score suggests push-out forces
- After about two and a half years in the position
- Praise and good wishes for Potter
- Lillian Etzkorn taking over
(exechange) — Valley City, Ohio, June 25, 2018 — Jay Potter, finance chief of Shiloh, leaves. It is an abrupt change. As announced by Shiloh Industries, Inc. in a news release and in a regulatory filing published on Monday, June 25, 2018, Warren Jay Potter leaves his post as chief financial officer at the supplier of lightweighting, noise and vibration solutions after about two and a half years in the role, effective immediately.
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 29 percent of the CFOs who departed over the past 12 months left the position within three years.
Potter’s duties will be taken over by Lillian Etzkorn, most recently chief financial officer of CPI Card Group Inc.
The fact that Potter’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
No reason given
In the announcement, Shiloh did not explicitly explain the obviously compelling reason for Potter’s sudden move, leaving room for speculation.
Precise information about Potter’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for shareholders when a CFO leaves the position abruptly and without a reasonable explanation.
“Left the employ”
Shiloh said: “Etzkorn succeeds W. Jay Potter who will be leaving the company.”
Shiloh further said: “On June 25, 2018, Jay W. Potter, the Chief Financial Officer of the Company, left the employ of the Company.”
Share price decline
The change follows a decline in the share price of Shiloh Industries, Inc. since February 2017.
Chaired by Curtis E. Moll
Shiloh Industries, Inc. is chaired by Curtis E. Moll.
Curtis E. Moll has served on Shiloh’s Board of Directors since 1993 and became chairman of the board in 1999. He is also chairman of the board and chief executive officer of MTD Holdings.
CEO: Ramzi Y. Hermiz
Ramzi Y. Hermiz serves as CEO of Shiloh Industries, Inc. Ramzi Y. Hermiz is president and chief executive officer of Shiloh Industries, Inc. He was appointed in September 2012.
In the position of CFO since 2015
Warren Jay Potter has been the Chief Financial Officer and Senior Vice President of Shiloh Industries, Inc. since December 16, 2015.
Potter joined Shiloh in 2015 to help harmonize the company’s operations after multiple acquisitions.
Potter has more than 30 years of financial leadership in complex manufacturing and service businesses including automotive, aerospace, building products and technology-enabled services.
Most recently, Potter served as executive vice president and chief financial officer at Sedgwick Claims Management Services Inc.
He has also held several senior financial leadership roles with industry-leading companies including Masco Cabinetry, EFW Inc., St. Jude Medical and AlliedSignal.
Potter earned both a Bachelor of Science degree and a Master of Business Administration degree from Indiana University.
He is a certified public accountant and a Certified Six Sigma Green Belt.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Jay Potter’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 27.2018 ($).