- Push-out Score suggests push-out forces
- After about five years in the position
- Praise and thanks for Galant
- Mike Pulli taking over
- Galant will remain as Vice Chairman at Verifone
- Galant spoke at length and said 101 words
(exechange) — San Jose, California, July 9, 2018 — Paul Galant, chief executive of Verifone, leaves the position. As announced by VeriFone Systems, Inc. in a news release on Monday, July 9, 2018, Paul S. Galant leaves his post as Chief Executive Officer at the provider of products for electronic payment transactions after about five years in the role, effective at the close of the previously announced transaction with Francisco Partners, which is expected to occur during the third calendar quarter of 2018.
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 9.4 years, according to data compiled by exechange.
Galant’s duties will be taken over by Michael V. (Mike) Pulli, a former Chief Executive Officer of Pace plc.
The fact that Galant’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.
“Transformation in a private context”
A reason for Galant’s departure from the CEO post was not explicitly given. Peter Christodoulo, Partner at Francisco Partners, said: “Mike’s experience and success in transforming Pace plc from a hardware company to a provider of integrated hardware and software systems and services will be of great benefit to Verifone as it continues its transformation in a private context.”
In April, Verifone announced it had agreed to a $3.4 billion deal – accounting for both cash and debt – that will take the firm private.
Galant will remain as Vice Chairman at Verifone
“Mr. Galant will continue to serve on Verifone’s Board and support Verifone as Vice Chairman,” Verifone said.
Verifone said: “Paul Galant has decided to step down as Chief Executive Officer, effective at the close of the previously announced transaction with Francisco Partners.”
Share price decline
The change follows a decline in the share price of VeriFone Systems, Inc. since May 2015.
Chaired by Pete Hart
VeriFone Systems, Inc. is chaired by Alex W. (Pete) Hart.
Hart has served as a director since July 2006.
In the position of CEO since 2013
Galant has served as the Company’s CEO and a director since October 2013.
Prior to joining Verifone, Galant served as the CEO of Citigroup Inc.’s Enterprise Payments business since 2010.
In this role, Galant oversaw the design, marketing and implementation of global business-to-consumer and consumer-to-business digital payments solutions.
From 2009 to 2010, Galant served as CEO of Citi Cards, heading Citigroup’s North American and International Credit Cards business.
From 2007 to 2009, Galant served as CEO of Citi Transaction Services, a division of Citi’s Institutional Clients Group.
From 2002 to 2007, Galant was the Global Head of the Cash Management business, one of the largest processors of payments globally.
Galant joined Citigroup, a multinational financial services corporation, in 2000. Prior to joining Citigroup, Galant held positions at Donaldson, Lufkin & Jenrette, Smith Barney, and Credit Suisse. Galant holds a Bachelor’s degree from Cornell University where he graduated a Phillip Merrill Scholar.
Galant currently serves on the board of directors of Conduent Inc., a publicly-held business process services provider and APX Group Holdings, Inc., a privately-held home automation services provider.
Galant will also become Senior Advisor to Francisco Partners on payments industry strategy and opportunities.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Paul Galant’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 29.2018 ($).