- Push-out Score suggests push-out forces
- After around seven years in the position
- Praise and thanks for Ewert
- Search for a successor
- Ewert spoke at length and said 127 words
(exechange) — Fremont, California, August 28, 2018 — Doug Ewert, chief executive of Tailored Brands, leaves. It is a change at short notice. As announced by Tailored Brands, Inc. in a news release and in a regulatory filing published on Tuesday, August 28, 2018, Douglas S. (Doug) Ewert leaves his post as Chief Executive Officer at the specialty retailer of men’s tailored clothing after around seven years in the role, effective September 30, 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 9.3 years, according to data compiled by exechange.
Tailored Brands will undertake a search for a successor.
Dinesh Lathi, Non-Executive Chairman of the Board, has been appointed Executive Chairman, effective immediately.
In light of Lathi’s new role, the Board appointed Theo Killion as lead independent director.
To ensure an orderly transition, Ewert will serve as a strategic advisor to the Company until the end of the calendar year.
Ewert’s move is part of a management shake-up also involving the position of Chief Operating Officer.
“Now is the right time”
The management change is explained as follows. Ewert said: “We have a compelling business with brands that can win in today’s market and I believe that now is the right time to begin the succession process to hand over the reins to new leadership.”
Precise information about Ewert’s future plans was not immediately available.
Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the post at short notice and without a reasonable explanation.
Tailored Brands said: “Doug Ewert has announced his intention to retire as Chief Executive Officer and as a member of the Company’s Board, effective September 30, 2018.”
Tailored Brands further said: “Douglas S. Ewert has announced his intention to retire from his positions as the Company’s Chief Executive Officer … and as a member of the Company’s Board of Directors …, effective September 30, 2018.”
Share price decline
The change follows a decline in the share price of Tailored Brands, Inc. since June 2015.
In the position of CEO since 2011
Ewert joined the Company in 1995 and has served as Chief Executive Officer since June 2011.
Previously he served the Company in various leadership roles, including General Merchandise Manager, Senior Vice President –Merchandising, Executive Vice President and Chief Operating Officer of K&G, Executive Vice President and Chief Operating Officer of the Company, and President.
As a general rule, when a top manager announces to step down 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 Doug Ewert’s imminent 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 36.2018 ($).