- Push-out Score suggests push-out forces
- After 22 years in the position
- Accolades and praise for Woltosz
- Shawn O’Connor taking over
- Woltosz spoke at length and said 178 words
(exechange) — Lancaster, California, June 26, 2018 — Walt Woltosz, chief executive of Simulations Plus, leaves. It is an abrupt change. As announced by Simulations Plus, Inc. in a news release on Tuesday, June 26, 2018, Walter S. (Walt) Woltosz leaves his post as chief executive officer at the maker of simulation and modeling software after 22 years in the role, effective immediately.
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 CEOs who departed over the past 12 months was 9.5 years, according to data compiled by exechange. Only 11 percent of the CEOs who departed over the past 12 months left the position after more than 20 years.
Woltosz’s duties will be taken over by Shawn M. O’Connor, most recently chief executive officer of Entelos, Inc.
The fact that Woltosz’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
“The opportunity to retire while I can still do things that require significant physical activity makes sense”
Woltosz’s sudden departure from the CEO post is explained as follows. Walt Woltosz said: “While my health is excellent and I continue to enjoy the work, it’s clear that we owe it to our shareholders, employees, and customers to have a solid succession plan, and, personally, the opportunity to retire while I can still do things that require significant physical activity makes sense.”
Precise information about Woltosz’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the position abruptly and without a reasonable explanation.
Share price rise since March 2018
The change follows a rise in the share price of Simulations Plus, Inc. since March 2018.
In the position of CEO since 1996
Woltosz is a co-founder of the Company and has served as its Chief Executive Officer and as Chairman of the Board since its incorporation in July 1996.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Walt Woltosz’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 ($).