- Push-out Score determined
- After about a year in the position
- Responsibilities redistributed
- Search for a successor
(exechange) — New York, July 5, 2018 — This news came the day before Independence Day. Demos Parneros, chief executive of Barnes & Noble, leaves. As announced by Barnes & Noble, Inc. in a news release published on Tuesday, July 3, 2018 and in a regulatory filing published on Thursday, July 5, 2018, Demos Parneros leaves his post as Chief Executive Officer at the retail bookseller after about a year in the role.
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 9.5 years, according to data compiled by exechange. Only 10 percent of the CEOs who departed over the past 12 months left the position within two years, and 21 percent left the position within three years.
The exact date of Parneros’s departure was not specified in the announcement. Obviously, it was an abrupt change.
Barnes & Noble has already removed the name of Parneros as Chief Executive Officer from the leadership page.
Barnes & Noble will undertake a search for a successor.
The position of Chief Executive Officer is currently not filled. For the time being, Demos Parneros’s responsibilities are redistributed.
“Violations of the Company’s policies”
Parneros’s departure from the CEO post is explained as follows. Barnes & Noble said in a fairly blunt statement: “The Board of Directors of Barnes & Noble, Inc. … today announced the termination of its Chief Executive Officer, Demos Parneros, for violations of the Company’s policies.”
Barnes & Noble further said: “This action was taken by the Company’s Board of Directors who were advised by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP.”
Barnes & Noble added: “Mr. Parneros’ termination is not due to any disagreement with the Company regarding its financial reporting, policies or practices or any potential fraud relating thereto.”
Precise information about Parneros’s future plans was not immediately available.
Share price decline
The change follows a decline in the share price of Barnes & Noble, Inc. since July 2015.
Chaired by Leonard Riggio
Barnes & Noble, Inc. is chaired by Leonard Riggio.
Leonard Riggio is the founder of the Company and has been Chairman of the Board and a principal stockholder since its inception in 1986. He served as Chief Executive Officer from 1986 through February 2002 and from December 2016 through April 2017.
In the position of CEO since 2017
Demos Parneros was named Barnes & Noble’s Chief Executive Officer on April 27, 2017 after having joined the Company as Chief Operating Officer in November 2016.
Parneros was previously President, North American Stores & Online, for Staples, Inc.
He has 30 years of leadership experience in all aspects of retail management, including operations, human resources, merchandising, e-commerce, marketing and real estate.
Parneros started his career at Staples as General Manager of its first New York City store in 1987.
He worked his way up the ranks through multiple management positions, including SVP Mid-Atlantic Operations; President, US Stores; President, US Retail; and President, North American Stores & Online, where he was responsible for a team of 50,000 associates, across 1,800 stores, and Staples’ online business.
Parneros is a graduate of New York University with a Bachelor of Science in Management and Harvard Business School’s Advanced Management Program.
He is currently a member of Keycorp’s Board of Directors and a member of the Board of Advisors of Modell’s Sporting Goods.
At the time of Parneros’s appointment as Chief Executive Officer at Barnes & Noble, Leonard Riggio had said: “It has become abundantly clear over the last five months that Demos is a perfect fit for our Company and an outstanding choice for Chief Executive Officer. He is highly respected by our Board of Directors and our leadership team, and I believe Demos is fully prepared to help foster a new era of growth for Barnes & Noble.”
Push-out Score determined
The Push-out Score™ determined by exechange suggests that push-out forces have contributed to the change.
Read the full story in the exechange report 28.2018 ($).