- Push-out Score suggests push-out forces
- After almost 19 years in the position
- Accolades, praise and thanks for Gecht
- Search for a successor
- Gecht spoke at length and said 128 words
(exechange) — Fremont, California, July 30, 2018 — Guy Gecht, chief executive of Electronics For Imaging, leaves. As announced by Electronics For Imaging, Inc. in a news release and in a regulatory filing published on Monday, July 30, 2018, Guy Gecht leaves his post as Chief Executive Officer at the printing ink manufacturing company after almost 19 years in the role.
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 9.4 years, according to data compiled by exechange. Only 16 percent of the CEOs who departed over the past 12 months left the position after more than 15 years.
Gecht will continue to serve as CEO until his replacement is named, and has committed to working closely with the new CEO to ensure a successful transition.
Electronics For Imaging will undertake a search for a successor.
“The right time”
Gecht’s departure from the CEO post is explained as follows. Gecht said: “With vast market opportunities, loyal customers and a robust product roadmap, reinforced by the unprecedented interest in Nozomi, EFI has never been better positioned for continued growth and success. I think this makes it the right time, after 19 years as CEO of this unique company, for me to hand the reins to the next leader.”
Precise information about Gecht’s future plans was not immediately available.
Electronics For Imaging said: “Electronics For Imaging, Inc. … announced today that its longtime CEO, Guy Gecht, has informed the Company’s Board of Directors that he intends to step down from his operating role at the Company when his successor is named.”
Electronics For Imaging further said: “Guy Gecht informed the Company’s board of directors that he intends to step down as the Company’s chief executive officer effective upon the appointment of a successor chief executive officer.”
“Not the result of any disagreement”
“Mr. Gecht’s decision to step down as the Company’s chief executive officer is not the result of any disagreement with the Company or the Company’s board of directors on any matters relating to the Company’s operations, policies or practices,” Electronics For Imaging said.
It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.
Share price decline
The change follows a decline in the share price of Electronics For Imaging, Inc. since July 2017.
Chaired by Gill Cogan
Electronics For Imaging, Inc. is chaired by Gill Cogan.
Gill Cogan is a founding partner of Opus Capital.
In the position of CEO since 2000
Gecht was appointed Chief Executive Officer of the Company on January 1, 2000.
Gecht leads EFI’s Imaging of Things transformation – printing on any materials from analog process to digital – as the company researches, invents, and deploys next-generation digital technology that brings brands, ideas, and images to life for family-owned businesses and partners around the globe.
Under Gecht’s leadership, EFI transformed from focusing on office printing with 100% of its business coming from OEMs to now, where EFI is focused on digital printing in areas of growth with about two thirds of the business sold directly or via resellers.
EFI has seen a 12% growth rate on average in the past four years.
In 2010, Gecht set a goal for EFI that the company would reach $1 billion in revenue, up from $400 million the prior year. Each year since then, EFI has recorded record revenue, most recently generating revenues of $992 million in 2016, a 12% growth over the year prior – all while maintaining a 12% revenue CAGR since 2010.
Gecht joined EFI in 1995.
He was named as CEO in January 2000 and served as president of the company prior to that, where he spearheaded the launch of EFI’s first print workflow software.
From 1996-1999, Gecht led engineering efforts for the company’s largest product line, Fiery Servers Division, culminating as Vice President, Fiery General Manager.
Prior to EFI, Gecht was Director of Engineering at Interro Systems and held software management positions at ASP and Apple Israel.
For five years, he served as an officer in the Israeli Defense Forces (IDF), managing an engineering development team and, later, was an Acting Manager of one of the IDF’s high-tech divisions.
Gecht holds a Bachelor of Science degree in mathematics and computer science from Ben Gurion University in Israel.
He was a member of the Israeli National Bridge Team and as a youth placed second in Europe and fifth globally in the World Junior Bridge Championships.
Gecht has served on the Board of Directors for CheckPoint Software Technologies since 2006.
Gecht is a 2015 recipient of the Michael H. Bruno Award from the Technical Association of the Graphic Arts for outstanding contributions to the graphic arts industry.
He was named a 2015 Game Changer by the Silicon Valley Leadership Group.
In 2014, Gecht was inducted into the Soderstrom Society, the Epicomm honors organization that recognizes distinguished contributions of print industry leaders.
Gecht was named a “Legend of Silicon Valley” in 2013 by the Frost & Sullivan Institute.
Gecht will remain as a member of the Board of Directors following the CEO change.
Generally speaking, when a top manager announces to step aside with no successor in place, it is a sign that the change was unplanned and too early.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Guy Gecht’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 32.2018 ($).