- Push-out Score suggests push-out forces
- After about three years in the position
- Praise for Kauffman
- Search for a successor
- Kauffman spoke at length and said 82 words
(exechange) — New York, September 12, 2018 — Scott Kauffman, chief executive of MDC Partners, leaves. As announced by MDC Partners Inc. in a news release and in a regulatory filing published on Wednesday, September 12, 2018, Scott L. Kauffman leaves his post as Chief Executive Officer at the advertising and marketing holding company after about three years in the role.
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 9.2 years, according to data compiled by exechange.
He will remain in his role as Chairman and CEO until a successor is named, and Kauffman will also continue as a member of the MDC Board of Directors following the appointment of a new CEO.
MDC Partners will undertake a search for a successor.
“Enhancing its offerings to clients”
A reason for Kauffman’s departure from the CEO post was not explicitly given. MDC Partners said: “The search led by the Board, which has retained a national search firm, will focus on an executive who can further advance the Company’s ongoing commitment to creating value for shareholders, differentiating its agencies in a competitive industry, and enhancing its offerings to clients.”
Precise information about Kauffman’s future plans was not immediately available.
MDC Partners said: “Scott Kauffman will step down as the Company’s Chairman and Chief Executive Officer.”
MDC Partners further said: “Mr. Kauffman will resign from his position as Chairman and Chief Executive Officer of the Company on the earlier to occur of December 31, 2018 and the date immediately prior to the first date of service of a new Chief Executive Officer of the Company.”
Share price decline
The change follows a decline in the share price of MDC Partners Inc. since March 2015.
In the position of CEO since 2015
Scott L. Kauffman has been the Chairman and Chief Executive Officer of the Company since July 20, 2015.
He is also currently the Chairman of Lotame, a venture-backed internet company.
From April 2013 to May 2014, he was President and Chief Executive Officer of New Engineering University, a new university system designed to educate the next generation of world-class engineers.
From April 2011 to January 2013, Kauffman was a member of the board of directors and then Chairman of LookSmart, Ltd, a publicly-traded, syndicated pay-per-click search network.
From January 2009 to August 2010, Kauffman was President and Chief Executive Officer, and a member of the board of directors, of GeekNet, Inc., a publicly-traded open source software application developer and e-commerce website operator.
From September 2006 until its acquisition by Yahoo! in October 2007, Kauffman was President and Chief Operating Officer, and a member of the board of directors, of BlueLithium, Inc., an internet advertising network and performance marketing company.
Prior to joining BlueLithium, Kauffman was President and CEO, and a member of the board of directors, of several early stage companies, including Zinio Systems, Inc., MusicNow LLC and Coremetrics Inc., where he continued to serve as a board member until the company was acquired by IBM in July 2010.
Kauffman has served in senior and executive management capacities with other digital entertainment, consumer marketing, media and technology companies, including CompuServe and Time Warner.
In 1996, Advertising Age named Kauffman one of twenty digital media masters, and in 1992, Advertising Age named him one of the top 100 marketers in the country.
Kauffman has been a member of the MDC Partners board of directors since his appointment on April 28, 2006.
Kauffman is a resident of Palo Alto, California, and maintains a part-time residence in New York, New York.
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 Scott Kauffman’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 39.2018 ($).