- Push-out Score suggests push-out forces
- After about 19 years in the position
- Praise, thanks and good wishes for Reddish
- Peter Wiese taking over
(exechange) — Chico, California, August 13, 2018 — Tom Reddish, finance chief of TriCo, leaves. It is an abrupt change. As announced by TriCo Bancshares in a news release on Monday, August 13, 2018, Thomas J. (Tom) Reddish leaves his post as Chief Financial Officer at the holding company for Tri Counties Bank after about 19 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 CFOs who departed over the past 12 months was 6.8 years, according to data compiled by exechange. Only 7 percent of the CFOs who departed over the past 12 months left the position after more than 15 years.
Reddish’s duties will be taken over by Peter Wiese, most recently partner of Crowe Horwath LLP.
The fact that Reddish’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, TriCo did not explicitly explain the obviously compelling reason for Reddish’s sudden move, leaving room for speculation.
Precise information about Reddish’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CFO leaves the post abruptly and without an understandable explanation.
TriCo said: “Mr. Wiese replaces Thomas J. Reddish, whose employment as Executive Vice President and Chief Financial Officer terminated as of August 13, 2018.”
“Departure is unrelated to the Company’s financial condition, financial reporting or accounting practices, investments, policies or regulatory condition”
“Mr. Reddish’s departure is unrelated to the Company’s financial condition, financial reporting or accounting practices, investments, policies or regulatory condition,” TriCo 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 TriCo Bancshares since November 2017.
Chaired by William J. Casey
TriCo Bancshares is chaired by William J. Casey.
CEO: Richard P. Smith
Richard P. Smith serves as CEO of TriCo Bancshares. Richard P. Smith has been the Chief Executive Officer of TriCo Bancshares since November 1999.
In the position of CFO since 1999
Thomas J. Reddish has been the Chief Financial Officer of Trico Bancshares and Tri Counties Bank since July 1999.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Tom Reddish’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 34.2018 ($).