- Push-out Score suggests push-out forces
- After about four and a half years in the position
- Accolades, praise, thanks and good wishes for Goforth
- Search for a successor
(exechange) — Tucker, Georgia, October 1, 2018 — Doug Goforth, finance chief of GMS, leaves. As announced by GMS Inc. in a news release and in a regulatory filing published on Monday, October 1, 2018, Howard Douglas (Doug) Goforth leaves his post as Chief Financial Officer at the distributor of wallboard and suspended ceilings systems after about four and a half 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 CFOs who departed over the past 12 months was 6.7 years, according to data compiled by exechange.
To ensure a smooth transition, Goforth plans to continue to serve as CFO of GMS until December 31, 2018 or until a successor is named and as an advisor to the company through March 31, 2019.
GMS will undertake a search for a successor.
“To explore leadership opportunities outside of GMS”
Goforth’s departure from the CFO post is explained as follows. GMS said: “Doug Goforth, the Company’s Chief Financial Officer (CFO), plans to depart the company to explore leadership opportunities outside of GMS.”
The phrase “to explore leadership opportunities outside of GMS” opens the door to speculation.
Precise information about Goforth’s future plans was not immediately available.
GMS said: “On October 1, 2018, GMS Inc. … announced that H. Douglas Goforth has resigned from his position as Vice President, Chief Financial Officer and Treasurer effective December 31, 2018, to pursue leadership opportunities outside of the Company.”
Share price decline
The change follows a decline in the share price of GMS Inc. since January 2018.
Chaired by Richard K. Mueller
GMS Inc. is chaired by Richard K. Mueller.
Richard K. Mueller, the Chairman of the Company’s board of directors, co-founded the Company in 1971. Mueller served as the Company’s Chief Executive Officer from 1990 until May 2015.
CEO: Michael Callahan
Michael Callahan serves as CEO of GMS Inc. G. Michael Callahan, Jr., the Company’s Chief Executive Officer, President and member of the Company’s board of directors, joined the Company in 1993. Callahan has served as the Company’s Chief Executive Officer since May 2015.
In the position of CFO since 2014
Howard Douglas Goforth has been Chief Financial Officer, Vice President and Treasurer of GMS since August 2014.
H.Douglas Goforth, the Company’s Vice President, Chief Financial Officer and Treasurer, joined the Company in 2014.
Prior to joining the Company, Goforth served as a Senior Vice President, Chief Financial Officer and Treasurer at BlueLinx Holdings Inc., or BlueLinx, from February 2008 until June 2014.
From November 2006 until February 2008, Goforth served as Vice President and Corporate Controller for Armor Holdings Inc., which was acquired by BAE Systems in July 2007.
Previously he served as Corporate Controller for BlueLinx from May 2004 until October 2006, where he played a key role in BlueLinx’s initial public offering.
From 2002 until 2004 he served as Controller for BlueLinx (formerly Georgia- Pacific, Building Products Distribution Division).
Goforth has over 25 years of combined accounting, finance, treasury, acquisition and management experience with leading distribution and manufacturing companies including Mitsubishi Wireless Communications, Inc., Yamaha Motor Manufacturing, Inc. and Ingersoll-Rand.
Goforth is a North Carolina State Board Certified Public Accountant and earned a B.S. in Accounting from Mars Hill College in North Carolina.
Generally speaking, when a top leader announces to step aside with no successor available, it’s 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 Goforth’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 41.2018 ($).